Correlation Between Gozde Girisim and Euro Trend

Can any of the company-specific risk be diversified away by investing in both Gozde Girisim and Euro Trend 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 Gozde Girisim and Euro Trend into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gozde Girisim Sermayesi and Euro Trend Yatirim, you can compare the effects of market volatilities on Gozde Girisim and Euro Trend 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 Gozde Girisim with a short position of Euro Trend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gozde Girisim and Euro Trend.

Diversification Opportunities for Gozde Girisim and Euro Trend

0.83

Correlation Coefficient

Gozde Girisim  Euro Trend

Very poor diversification

The 3 months correlation between Gozde and Euro is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Gozde Girisim Sermayesi and Euro Trend Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Trend Yatirim and Gozde Girisim 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 Gozde Girisim Sermayesi are associated (or correlated) with Euro Trend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Trend Yatirim has no effect on the direction of Gozde Girisim i.e., Gozde Girisim and Euro Trend go up and down completely randomly.

Pair Corralation between Gozde Girisim and Euro Trend

Assuming the 90 days trading horizon Gozde Girisim Sermayesi is expected to generate 0.86 times more return on investment than Euro Trend. However, Gozde Girisim Sermayesi is 1.16 times less risky than Euro Trend. It trades about -0.09 of its potential returns per unit of risk. Euro Trend Yatirim is currently generating about -0.08 per unit of risk. If you would invest  3,092  in Gozde Girisim Sermayesi on September 22, 2024 and sell it today you would lose (424.00) from holding Gozde Girisim Sermayesi or give up 13.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Gozde Girisim Sermayesi  vs.  Euro Trend Yatirim

Gozde Girisim Sermayesi

Risk-Adjusted Performance

0 of 100

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.

Euro Trend Yatirim

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Euro Trend Yatirim 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.

Pair Trading with Gozde Girisim and Euro Trend

The main advantage of trading using opposite Gozde Girisim and Euro Trend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gozde Girisim position performs unexpectedly, Euro Trend 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 Euro Trend will offset losses from the drop in Euro Trend's long position.

The idea behind Gozde Girisim Sermayesi and Euro Trend Yatirim 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..