Correlation Between Galata Wind and Alkim Kagit
Can any of the company-specific risk be diversified away by investing in both Galata Wind and Alkim Kagit 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 Galata Wind and Alkim Kagit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galata Wind Enerji and Alkim Kagit Sanayi, you can compare the effects of market volatilities on Galata Wind and Alkim Kagit 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 Galata Wind with a short position of Alkim Kagit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galata Wind and Alkim Kagit.
Diversification Opportunities for Galata Wind and Alkim Kagit
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Galata and Alkim is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Galata Wind Enerji and Alkim Kagit Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkim Kagit Sanayi and Galata Wind 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 Galata Wind Enerji are associated (or correlated) with Alkim Kagit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkim Kagit Sanayi has no effect on the direction of Galata Wind i.e., Galata Wind and Alkim Kagit go up and down completely randomly.
Pair Corralation between Galata Wind and Alkim Kagit
Assuming the 90 days trading horizon Galata Wind is expected to generate 1.38 times less return on investment than Alkim Kagit. But when comparing it to its historical volatility, Galata Wind Enerji is 1.79 times less risky than Alkim Kagit. It trades about 0.44 of its potential returns per unit of risk. Alkim Kagit Sanayi is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 655.00 in Alkim Kagit Sanayi on September 25, 2024 and sell it today you would earn a total of 185.00 from holding Alkim Kagit Sanayi or generate 28.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Galata Wind Enerji vs. Alkim Kagit Sanayi
Performance |
Timeline |
Galata Wind Enerji |
Alkim Kagit Sanayi |
Galata Wind and Alkim Kagit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Galata Wind and Alkim Kagit
The main advantage of trading using opposite Galata Wind and Alkim Kagit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galata Wind position performs unexpectedly, Alkim Kagit 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 Alkim Kagit will offset losses from the drop in Alkim Kagit's long position.Galata Wind vs. Aksa Enerji Uretim | Galata Wind vs. Pamel Yenilenebilir Elektrik | Galata Wind vs. Metemtur Yatrm Enerji |
Alkim Kagit vs. Creditwest Faktoring AS | Alkim Kagit vs. MEGA METAL | Alkim Kagit vs. Trabzonspor Sportif Yatirim | Alkim Kagit vs. Cuhadaroglu Metal Sanayi |
Check out your portfolio center.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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |