Correlation Between Karsan Otomotiv and Guler Yatirim
Can any of the company-specific risk be diversified away by investing in both Karsan Otomotiv and Guler Yatirim 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 Karsan Otomotiv and Guler Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karsan Otomotiv Sanayi and Guler Yatirim Holding, you can compare the effects of market volatilities on Karsan Otomotiv and Guler Yatirim 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 Karsan Otomotiv with a short position of Guler Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karsan Otomotiv and Guler Yatirim.
Diversification Opportunities for Karsan Otomotiv and Guler Yatirim
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Karsan and Guler is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Karsan Otomotiv Sanayi and Guler Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guler Yatirim Holding and Karsan Otomotiv 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 Karsan Otomotiv Sanayi are associated (or correlated) with Guler Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guler Yatirim Holding has no effect on the direction of Karsan Otomotiv i.e., Karsan Otomotiv and Guler Yatirim go up and down completely randomly.
Pair Corralation between Karsan Otomotiv and Guler Yatirim
Assuming the 90 days trading horizon Karsan Otomotiv Sanayi is expected to under-perform the Guler Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Karsan Otomotiv Sanayi is 1.85 times less risky than Guler Yatirim. The stock trades about -0.21 of its potential returns per unit of risk. The Guler Yatirim Holding is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,164 in Guler Yatirim Holding on September 24, 2024 and sell it today you would earn a total of 102.00 from holding Guler Yatirim Holding or generate 8.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Karsan Otomotiv Sanayi vs. Guler Yatirim Holding
Performance |
Timeline |
Karsan Otomotiv Sanayi |
Guler Yatirim Holding |
Karsan Otomotiv and Guler Yatirim Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Karsan Otomotiv and Guler Yatirim
The main advantage of trading using opposite Karsan Otomotiv and Guler Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karsan Otomotiv position performs unexpectedly, Guler Yatirim 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 Guler Yatirim will offset losses from the drop in Guler Yatirim's long position.Karsan Otomotiv vs. Tofas Turk Otomobil | Karsan Otomotiv vs. Hektas Ticaret TAS | Karsan Otomotiv vs. Eregli Demir ve |
Guler Yatirim vs. Aksa Akrilik Kimya | Guler Yatirim vs. Tofas Turk Otomobil | Guler Yatirim vs. AK Sigorta AS | Guler Yatirim vs. Is Yatirim Menkul |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |