Correlation Between Akbank TAS and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Gentas Genel 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 Akbank TAS and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and Gentas Genel Metal, you can compare the effects of market volatilities on Akbank TAS and Gentas Genel 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 Akbank TAS with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Gentas Genel.
Diversification Opportunities for Akbank TAS and Gentas Genel
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Akbank and Gentas is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Gentas Genel Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentas Genel Metal and Akbank TAS 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 Akbank TAS are associated (or correlated) with Gentas Genel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentas Genel Metal has no effect on the direction of Akbank TAS i.e., Akbank TAS and Gentas Genel go up and down completely randomly.
Pair Corralation between Akbank TAS and Gentas Genel
Assuming the 90 days trading horizon Akbank TAS is expected to generate 2.35 times less return on investment than Gentas Genel. In addition to that, Akbank TAS is 1.33 times more volatile than Gentas Genel Metal. It trades about 0.02 of its total potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.07 per unit of volatility. If you would invest 772.00 in Gentas Genel Metal on August 29, 2024 and sell it today you would earn a total of 73.00 from holding Gentas Genel Metal or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akbank TAS vs. Gentas Genel Metal
Performance |
| Timeline |
| Akbank TAS |
| Gentas Genel Metal |
Akbank TAS and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank TAS and Gentas Genel
The main advantage of trading using opposite Akbank TAS and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Gentas Genel 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 Gentas Genel will offset losses from the drop in Gentas Genel's long position.| Akbank TAS vs. Turkiye Garanti Bankasi | Akbank TAS vs. Yapi ve Kredi | Akbank TAS vs. Turkiye Is Bankasi | Akbank TAS vs. Koc Holding AS |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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