Correlation Between Gentas Genel and Akbank TAS
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Akbank TAS 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 Akbank TAS 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 Akbank TAS, you can compare the effects of market volatilities on Gentas Genel and Akbank TAS 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 Akbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Akbank TAS.
Diversification Opportunities for Gentas Genel and Akbank TAS
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gentas and Akbank is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Akbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank TAS 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 Akbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbank TAS has no effect on the direction of Gentas Genel i.e., Gentas Genel and Akbank TAS go up and down completely randomly.
Pair Corralation between Gentas Genel and Akbank TAS
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.83 times more return on investment than Akbank TAS. However, Gentas Genel is 1.83 times more volatile than Akbank TAS. It trades about 0.18 of its potential returns per unit of risk. Akbank TAS is currently generating about 0.02 per unit of risk. If you would invest 1,010 in Gentas Genel Metal on October 30, 2024 and sell it today you would earn a total of 127.00 from holding Gentas Genel Metal or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Akbank TAS
Performance |
| Timeline |
| Gentas Genel Metal |
| Akbank TAS |
Gentas Genel and Akbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Akbank TAS
The main advantage of trading using opposite Gentas Genel and Akbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Akbank TAS 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 Akbank TAS will offset losses from the drop in Akbank TAS's long position.| Gentas Genel vs. Politeknik Metal Sanayi | Gentas Genel vs. Trabzonspor Sportif Yatirim | Gentas Genel vs. KOC METALURJI | Gentas Genel vs. Galatasaray Sportif Sinai |
| Akbank TAS vs. Turkiye Garanti Bankasi | Akbank TAS vs. Yapi ve Kredi | Akbank TAS vs. Turkiye Is Bankasi | Akbank TAS vs. Koc Holding AS |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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