Correlation Between Kustur Kusadasi and Galatasaray Sportif

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

By analyzing existing cross correlation between Kustur Kusadasi Turizm and Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Kustur Kusadasi and Galatasaray Sportif 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 Kustur Kusadasi with a short position of Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kustur Kusadasi and Galatasaray Sportif.

Diversification Opportunities for Kustur Kusadasi and Galatasaray Sportif

0.3

Correlation Coefficient

Kustur Kusadasi  Galatasaray Sportif

Weak diversification

The 3 months correlation between Kustur and Galatasaray is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kustur Kusadasi Turizm and Galatasaray Sportif Sinai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galatasaray Sportif Sinai and Kustur Kusadasi 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 Kustur Kusadasi Turizm are associated (or correlated) with Galatasaray Sportif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galatasaray Sportif Sinai has no effect on the direction of Kustur Kusadasi i.e., Kustur Kusadasi and Galatasaray Sportif go up and down completely randomly.

Pair Corralation between Kustur Kusadasi and Galatasaray Sportif

Assuming the 90 days trading horizon Kustur Kusadasi Turizm is expected to under-perform the Galatasaray Sportif. In addition to that, Kustur Kusadasi is 3.44 times more volatile than Galatasaray Sportif Sinai. It trades about -0.23 of its total potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about -0.45 per unit of volatility. If you would invest  702.00  in Galatasaray Sportif Sinai on September 23, 2024 and sell it today you would lose (91.00) from holding Galatasaray Sportif Sinai or give up 12.96% of portfolio value over 90 days.

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

Kustur Kusadasi Turizm  vs.  Galatasaray Sportif Sinai

Kustur Kusadasi Turizm

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kustur Kusadasi Turizm has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Galatasaray Sportif Sinai

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Galatasaray Sportif Sinai 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 Kustur Kusadasi and Galatasaray Sportif

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

The idea behind Kustur Kusadasi Turizm and Galatasaray Sportif Sinai 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.