Correlation Between Euro Menkul and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Euro Menkul 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 Euro Menkul and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Euro Menkul Kiymet and Gentas Genel Metal, you can compare the effects of market volatilities on Euro Menkul 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 Euro Menkul with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euro Menkul and Gentas Genel.
Diversification Opportunities for Euro Menkul and Gentas Genel
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Euro and Gentas is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Euro Menkul Kiymet 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 Euro Menkul 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 Euro Menkul Kiymet 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 Euro Menkul i.e., Euro Menkul and Gentas Genel go up and down completely randomly.
Pair Corralation between Euro Menkul and Gentas Genel
Assuming the 90 days trading horizon Euro Menkul Kiymet is expected to under-perform the Gentas Genel. In addition to that, Euro Menkul is 1.42 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 0.02 per unit of volatility. If you would invest 915.00 in Gentas Genel Metal on September 14, 2024 and sell it today you would earn a total of 33.00 from holding Gentas Genel Metal or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Euro Menkul Kiymet vs. Gentas Genel Metal
Performance |
| Timeline |
| Euro Menkul Kiymet |
| Gentas Genel Metal |
Euro Menkul and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Euro Menkul and Gentas Genel
The main advantage of trading using opposite Euro Menkul and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euro Menkul 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.| Euro Menkul vs. Gentas Genel Metal | Euro Menkul vs. Koza Anadolu Metal | Euro Menkul vs. Politeknik Metal Sanayi | Euro Menkul vs. MEGA METAL |
| Gentas Genel vs. Ege Endustri ve | Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Turkiye Garanti Bankasi | Gentas Genel vs. Turkish Airlines |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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