Correlation Between Frigo Pak and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Frigo Pak 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 Frigo Pak and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frigo Pak Gida Maddeleri and Gentas Genel Metal, you can compare the effects of market volatilities on Frigo Pak 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 Frigo Pak with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frigo Pak and Gentas Genel.
Diversification Opportunities for Frigo Pak and Gentas Genel
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Frigo and Gentas is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Frigo Pak Gida Maddeleri 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 Frigo Pak 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 Frigo Pak Gida Maddeleri 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 Frigo Pak i.e., Frigo Pak and Gentas Genel go up and down completely randomly.
Pair Corralation between Frigo Pak and Gentas Genel
Assuming the 90 days trading horizon Frigo Pak Gida Maddeleri is expected to generate 1.21 times more return on investment than Gentas Genel. However, Frigo Pak is 1.21 times more volatile than Gentas Genel Metal. It trades about 0.14 of its potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.12 per unit of risk. If you would invest 683.00 in Frigo Pak Gida Maddeleri on September 12, 2024 and sell it today you would earn a total of 155.00 from holding Frigo Pak Gida Maddeleri or generate 22.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Frigo Pak Gida Maddeleri vs. Gentas Genel Metal
Performance |
| Timeline |
| Frigo Pak Gida |
| Gentas Genel Metal |
Frigo Pak and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frigo Pak and Gentas Genel
The main advantage of trading using opposite Frigo Pak and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frigo Pak 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.| Frigo Pak vs. Gentas Genel Metal | Frigo Pak vs. Akcansa Cimento Sanayi | Frigo Pak vs. Sekerbank TAS | Frigo Pak vs. E Data Teknoloji Pazarlama |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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