Correlation Between Verusaturk Girisim and Garanti Faktoring
Can any of the company-specific risk be diversified away by investing in both Verusaturk Girisim and Garanti Faktoring 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 Verusaturk Girisim and Garanti Faktoring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verusaturk Girisim Sermayesi and Garanti Faktoring AS, you can compare the effects of market volatilities on Verusaturk Girisim and Garanti Faktoring 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 Verusaturk Girisim with a short position of Garanti Faktoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verusaturk Girisim and Garanti Faktoring.
Diversification Opportunities for Verusaturk Girisim and Garanti Faktoring
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Verusaturk and Garanti is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Verusaturk Girisim Sermayesi and Garanti Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garanti Faktoring and Verusaturk 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 Verusaturk Girisim Sermayesi are associated (or correlated) with Garanti Faktoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garanti Faktoring has no effect on the direction of Verusaturk Girisim i.e., Verusaturk Girisim and Garanti Faktoring go up and down completely randomly.
Pair Corralation between Verusaturk Girisim and Garanti Faktoring
Assuming the 90 days trading horizon Verusaturk Girisim Sermayesi is expected to generate 0.77 times more return on investment than Garanti Faktoring. However, Verusaturk Girisim Sermayesi is 1.3 times less risky than Garanti Faktoring. It trades about 0.2 of its potential returns per unit of risk. Garanti Faktoring AS is currently generating about 0.12 per unit of risk. If you would invest 4,250 in Verusaturk Girisim Sermayesi on January 26, 2024 and sell it today you would earn a total of 466.00 from holding Verusaturk Girisim Sermayesi or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Verusaturk Girisim Sermayesi vs. Garanti Faktoring AS
Performance |
| Timeline |
| Verusaturk Girisim |
| Garanti Faktoring |
Verusaturk Girisim and Garanti Faktoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verusaturk Girisim and Garanti Faktoring
The main advantage of trading using opposite Verusaturk Girisim and Garanti Faktoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verusaturk Girisim position performs unexpectedly, Garanti Faktoring 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 Garanti Faktoring will offset losses from the drop in Garanti Faktoring's long position.| Verusaturk Girisim vs. Cuhadaroglu Metal Sanayi | Verusaturk Girisim vs. Qnb Finansbank AS | Verusaturk Girisim vs. Bms Birlesik Metal | Verusaturk Girisim vs. Politeknik 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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