Correlation Between Akcansa Cimento and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento 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 Akcansa Cimento and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akcansa Cimento Sanayi and Gentas Genel Metal, you can compare the effects of market volatilities on Akcansa Cimento 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 Akcansa Cimento with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Gentas Genel.
Diversification Opportunities for Akcansa Cimento and Gentas Genel
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akcansa and Gentas is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi 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 Akcansa Cimento 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 Akcansa Cimento Sanayi 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 Akcansa Cimento i.e., Akcansa Cimento and Gentas Genel go up and down completely randomly.
Pair Corralation between Akcansa Cimento and Gentas Genel
Assuming the 90 days trading horizon Akcansa Cimento Sanayi is expected to generate 0.95 times more return on investment than Gentas Genel. However, Akcansa Cimento Sanayi is 1.06 times less risky than Gentas Genel. It trades about 0.08 of its potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.02 per unit of risk. If you would invest 13,660 in Akcansa Cimento Sanayi on August 30, 2024 and sell it today you would earn a total of 2,780 from holding Akcansa Cimento Sanayi or generate 20.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akcansa Cimento Sanayi vs. Gentas Genel Metal
Performance |
| Timeline |
| Akcansa Cimento Sanayi |
| Gentas Genel Metal |
Akcansa Cimento and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akcansa Cimento and Gentas Genel
The main advantage of trading using opposite Akcansa Cimento and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento 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.| Akcansa Cimento vs. Is Yatirim Ortakligi | Akcansa Cimento vs. Euro Kapital Yatirim | Akcansa Cimento vs. Atlas Menkul Kiymetler | Akcansa Cimento vs. Dogus Gayrimenkul Yatirim |
| Gentas Genel vs. Haci Omer Sabanci | Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Turkiye Garanti Bankasi | Gentas Genel vs. Akbank TAS |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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