Correlation Between Galata Wind and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Galata Wind and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Galata Wind and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galata Wind and Dow Jones.
Diversification Opportunities for Galata Wind and Dow Jones
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Galata and Dow is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Galata Wind Enerji and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Galata Wind i.e., Galata Wind and Dow Jones go up and down completely randomly.
Pair Corralation between Galata Wind and Dow Jones
Assuming the 90 days trading horizon Galata Wind is expected to generate 6.66 times less return on investment than Dow Jones. In addition to that, Galata Wind is 2.85 times more volatile than Dow Jones Industrial. It trades about 0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.18 per unit of volatility. If you would invest 3,935,701 in Dow Jones Industrial on June 11, 2024 and sell it today you would earn a total of 98,840 from holding Dow Jones Industrial or generate 2.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Galata Wind Enerji vs. Dow Jones Industrial
Performance |
Timeline |
Galata Wind and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Galata Wind Enerji
Pair trading matchups for Galata Wind
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Galata Wind and Dow Jones
The main advantage of trading using opposite Galata Wind and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galata Wind position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.Galata Wind vs. Aksa Enerji Uretim | Galata Wind vs. Pamel Yenilenebilir Elektrik | Galata Wind vs. Cuhadaroglu Metal Sanayi | Galata Wind vs. Turkiye Vakiflar Bankasi |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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