Correlation Between GM and Gozde Girisim

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Can any of the company-specific risk be diversified away by investing in both GM and Gozde Girisim 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 GM and Gozde Girisim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Gozde Girisim Sermayesi, you can compare the effects of market volatilities on GM and Gozde Girisim 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 GM with a short position of Gozde Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Gozde Girisim.

Diversification Opportunities for GM and Gozde Girisim

-0.56
  Correlation Coefficient

Excellent diversification

The 3 months correlation between GM and Gozde is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Gozde Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gozde Girisim Sermayesi and GM 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 General Motors are associated (or correlated) with Gozde Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gozde Girisim Sermayesi has no effect on the direction of GM i.e., GM and Gozde Girisim go up and down completely randomly.

Pair Corralation between GM and Gozde Girisim

Allowing for the 90-day total investment horizon General Motors is expected to generate 1.06 times more return on investment than Gozde Girisim. However, GM is 1.06 times more volatile than Gozde Girisim Sermayesi. It trades about 0.06 of its potential returns per unit of risk. Gozde Girisim Sermayesi is currently generating about -0.09 per unit of risk. If you would invest  4,793  in General Motors on September 23, 2024 and sell it today you would earn a total of  388.00  from holding General Motors or generate 8.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

General Motors  vs.  Gozde Girisim Sermayesi

 Performance 
       Timeline  
General Motors 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in General Motors are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, GM may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Gozde Girisim Sermayesi 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Gozde Girisim Sermayesi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

GM and Gozde Girisim Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GM and Gozde Girisim

The main advantage of trading using opposite GM and Gozde Girisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Gozde Girisim 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 Gozde Girisim will offset losses from the drop in Gozde Girisim's long position.
The idea behind General Motors and Gozde Girisim Sermayesi 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

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