Correlation Between Garanti Faktoring and Pamel Yenilenebilir

Can any of the company-specific risk be diversified away by investing in both Garanti Faktoring and Pamel Yenilenebilir at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Garanti Faktoring and Pamel Yenilenebilir into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Garanti Faktoring AS and Pamel Yenilenebilir Elektrik, you can compare the effects of market volatilities on Garanti Faktoring and Pamel Yenilenebilir and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Garanti Faktoring with a short position of Pamel Yenilenebilir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garanti Faktoring and Pamel Yenilenebilir.

Diversification Opportunities for Garanti Faktoring and Pamel Yenilenebilir

0.84

Correlation Coefficient

Garanti Faktoring  Pamel Yenilenebilir

Very poor diversification

The 3 months correlation between Garanti and Pamel is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Garanti Faktoring AS and Pamel Yenilenebilir Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pamel Yenilenebilir and Garanti Faktoring is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Garanti Faktoring AS are associated (or correlated) with Pamel Yenilenebilir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pamel Yenilenebilir has no effect on the direction of Garanti Faktoring i.e., Garanti Faktoring and Pamel Yenilenebilir go up and down completely randomly.

Pair Corralation between Garanti Faktoring and Pamel Yenilenebilir

Assuming the 90 days trading horizon Garanti Faktoring AS is expected to generate 1.06 times more return on investment than Pamel Yenilenebilir. However, Garanti Faktoring is 1.06 times more volatile than Pamel Yenilenebilir Elektrik. It trades about -0.03 of its potential returns per unit of risk. Pamel Yenilenebilir Elektrik is currently generating about -0.09 per unit of risk. If you would invest  2,094  in Garanti Faktoring AS on September 13, 2024 and sell it today you would lose (96.00) from holding Garanti Faktoring AS or give up 4.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Garanti Faktoring AS  vs.  Pamel Yenilenebilir Elektrik

Garanti Faktoring

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Garanti Faktoring AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Garanti Faktoring is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pamel Yenilenebilir

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pamel Yenilenebilir Elektrik has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Garanti Faktoring and Pamel Yenilenebilir

The main advantage of trading using opposite Garanti Faktoring and Pamel Yenilenebilir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garanti Faktoring position performs unexpectedly, Pamel Yenilenebilir can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pamel Yenilenebilir will offset losses from the drop in Pamel Yenilenebilir's long position.

The idea behind Garanti Faktoring AS and Pamel Yenilenebilir Elektrik pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.