Correlation Between Ford Otomotiv and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv 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 Ford Otomotiv and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Otomotiv Sanayi and Gentas Genel Metal, you can compare the effects of market volatilities on Ford Otomotiv 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 Ford Otomotiv with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and Gentas Genel.
Diversification Opportunities for Ford Otomotiv and Gentas Genel
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ford and Gentas is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv 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 Ford Otomotiv 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 Ford Otomotiv 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 Ford Otomotiv i.e., Ford Otomotiv and Gentas Genel go up and down completely randomly.
Pair Corralation between Ford Otomotiv and Gentas Genel
Assuming the 90 days trading horizon Ford Otomotiv Sanayi is expected to generate 0.88 times more return on investment than Gentas Genel. However, Ford Otomotiv Sanayi is 1.14 times less risky than Gentas Genel. It trades about 0.07 of its potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.06 per unit of risk. If you would invest 69,230 in Ford Otomotiv Sanayi on September 20, 2024 and sell it today you would earn a total of 26,470 from holding Ford Otomotiv Sanayi or generate 38.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Otomotiv Sanayi vs. Gentas Genel Metal
Performance |
| Timeline |
| Ford Otomotiv Sanayi |
| Gentas Genel Metal |
Ford Otomotiv and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford Otomotiv and Gentas Genel
The main advantage of trading using opposite Ford Otomotiv and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv 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.| Ford Otomotiv vs. Eregli Demir ve | Ford Otomotiv vs. Tofas Turk Otomobil | Ford Otomotiv vs. Turkiye Petrol Rafinerileri | Ford Otomotiv vs. Turkiye Sise ve |
| Gentas Genel vs. Ege Endustri ve | Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Turkiye Garanti Bankasi | Gentas Genel vs. Ford Otomotiv Sanayi |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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