Correlation Between Hedef Girisim and Gozde Girisim

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

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

Diversification Opportunities for Hedef Girisim and Gozde Girisim

0.57

Correlation Coefficient

Hedef Girisim  Gozde Girisim

Very weak diversification

The 3 months correlation between Hedef and Gozde is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Girisim Sermayesi 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 Hedef 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 Hedef Girisim Sermayesi 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 Hedef Girisim i.e., Hedef Girisim and Gozde Girisim go up and down completely randomly.

Pair Corralation between Hedef Girisim and Gozde Girisim

Assuming the 90 days trading horizon Hedef Girisim Sermayesi is expected to generate 0.89 times more return on investment than Gozde Girisim. However, Hedef Girisim Sermayesi is 1.13 times less risky than Gozde Girisim. It trades about 0.0 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  156.00  in Hedef Girisim Sermayesi on September 22, 2024 and sell it today you would lose (2.00) from holding Hedef Girisim Sermayesi or give up 1.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Hedef Girisim Sermayesi  vs.  Gozde Girisim Sermayesi

Hedef Girisim Sermayesi

Risk-Adjusted Performance

0 of 100

Very Weak

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

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.

Pair Trading with Hedef Girisim and Gozde Girisim

The main advantage of trading using opposite Hedef Girisim and Gozde Girisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedef Girisim 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 Hedef Girisim Sermayesi 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.