Correlation Between Dagi Yatirim and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Dagi Yatirim 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 Dagi Yatirim and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dagi Yatirim Holding and Gentas Genel Metal, you can compare the effects of market volatilities on Dagi Yatirim 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 Dagi Yatirim with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dagi Yatirim and Gentas Genel.
Diversification Opportunities for Dagi Yatirim and Gentas Genel
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dagi and Gentas is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Dagi Yatirim Holding 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 Dagi Yatirim 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 Dagi Yatirim Holding 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 Dagi Yatirim i.e., Dagi Yatirim and Gentas Genel go up and down completely randomly.
Pair Corralation between Dagi Yatirim and Gentas Genel
Assuming the 90 days trading horizon Dagi Yatirim is expected to generate 1.24 times less return on investment than Gentas Genel. In addition to that, Dagi Yatirim is 1.13 times more volatile than Gentas Genel Metal. It trades about 0.04 of its total potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.05 per unit of volatility. If you would invest 519.00 in Gentas Genel Metal on September 13, 2024 and sell it today you would earn a total of 419.00 from holding Gentas Genel Metal or generate 80.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Dagi Yatirim Holding vs. Gentas Genel Metal
Performance |
| Timeline |
| Dagi Yatirim Holding |
| Gentas Genel Metal |
Dagi Yatirim and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dagi Yatirim and Gentas Genel
The main advantage of trading using opposite Dagi Yatirim and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dagi Yatirim 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.| Dagi Yatirim vs. Koza Anadolu Metal | Dagi Yatirim vs. Akbank TAS | Dagi Yatirim vs. Bms Birlesik Metal | Dagi Yatirim vs. MEGA METAL |
| Gentas Genel vs. Turkiye Kalkinma Bankasi | Gentas Genel vs. Turkish Airlines | Gentas Genel vs. Borlease Otomotiv AS | Gentas Genel vs. Koza Anadolu Metal |
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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