Correlation Between Birikim Varlik and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Birikim Varlik 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 Birikim Varlik and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Birikim Varlik Yonetim and Gentas Genel Metal, you can compare the effects of market volatilities on Birikim Varlik 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 Birikim Varlik with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birikim Varlik and Gentas Genel.
Diversification Opportunities for Birikim Varlik and Gentas Genel
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Birikim and Gentas is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Birikim Varlik Yonetim 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 Birikim Varlik 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 Birikim Varlik Yonetim 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 Birikim Varlik i.e., Birikim Varlik and Gentas Genel go up and down completely randomly.
Pair Corralation between Birikim Varlik and Gentas Genel
Assuming the 90 days trading horizon Birikim Varlik is expected to generate 1.36 times less return on investment than Gentas Genel. In addition to that, Birikim Varlik is 1.97 times more volatile than Gentas Genel Metal. It trades about 0.01 of its total potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.04 per unit of volatility. If you would invest 806.00 in Gentas Genel Metal on September 12, 2024 and sell it today you would earn a total of 132.00 from holding Gentas Genel Metal or generate 16.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Birikim Varlik Yonetim vs. Gentas Genel Metal
Performance |
| Timeline |
| Birikim Varlik Yonetim |
| Gentas Genel Metal |
Birikim Varlik and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Birikim Varlik and Gentas Genel
The main advantage of trading using opposite Birikim Varlik and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Birikim Varlik 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.| Birikim Varlik vs. Bms Birlesik Metal | Birikim Varlik vs. Akbank TAS | Birikim Varlik vs. Gentas Genel Metal | Birikim Varlik vs. Galatasaray Sportif Sinai |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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