Correlation Between Gentas Genel and Adel Kalemcilik
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Adel Kalemcilik 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 Gentas Genel and Adel Kalemcilik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gentas Genel Metal and Adel Kalemcilik Ticaret, you can compare the effects of market volatilities on Gentas Genel and Adel Kalemcilik 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 Gentas Genel with a short position of Adel Kalemcilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Adel Kalemcilik.
Diversification Opportunities for Gentas Genel and Adel Kalemcilik
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gentas and Adel is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Adel Kalemcilik Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adel Kalemcilik Ticaret and Gentas Genel 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 Gentas Genel Metal are associated (or correlated) with Adel Kalemcilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adel Kalemcilik Ticaret has no effect on the direction of Gentas Genel i.e., Gentas Genel and Adel Kalemcilik go up and down completely randomly.
Pair Corralation between Gentas Genel and Adel Kalemcilik
Assuming the 90 days trading horizon Gentas Genel is expected to generate 1.3 times less return on investment than Adel Kalemcilik. But when comparing it to its historical volatility, Gentas Genel Metal is 1.55 times less risky than Adel Kalemcilik. It trades about 0.01 of its potential returns per unit of risk. Adel Kalemcilik Ticaret is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,738 in Adel Kalemcilik Ticaret on September 4, 2024 and sell it today you would lose (258.00) from holding Adel Kalemcilik Ticaret or give up 6.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Adel Kalemcilik Ticaret
Performance |
| Timeline |
| Gentas Genel Metal |
| Adel Kalemcilik Ticaret |
Gentas Genel and Adel Kalemcilik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Adel Kalemcilik
The main advantage of trading using opposite Gentas Genel and Adel Kalemcilik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Adel Kalemcilik 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 Adel Kalemcilik will offset losses from the drop in Adel Kalemcilik's long position.| Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Arcelik AS | Gentas Genel vs. Turkiye Garanti Bankasi | Gentas Genel vs. Akbank TAS |
| Adel Kalemcilik vs. Mackolik Internet Hizmetleri | Adel Kalemcilik vs. Turkish Airlines | Adel Kalemcilik vs. Koza Anadolu Metal | Adel Kalemcilik vs. Gentas Genel 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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