Correlation Between Gentas Genel and Akcansa Cimento
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Akcansa Cimento 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 Akcansa Cimento 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 Akcansa Cimento Sanayi, you can compare the effects of market volatilities on Gentas Genel and Akcansa Cimento 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 Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Akcansa Cimento.
Diversification Opportunities for Gentas Genel and Akcansa Cimento
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gentas and Akcansa is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi 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 Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of Gentas Genel i.e., Gentas Genel and Akcansa Cimento go up and down completely randomly.
Pair Corralation between Gentas Genel and Akcansa Cimento
Assuming the 90 days trading horizon Gentas Genel is expected to generate 15.9 times less return on investment than Akcansa Cimento. In addition to that, Gentas Genel is 1.71 times more volatile than Akcansa Cimento Sanayi. It trades about 0.01 of its total potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.39 per unit of volatility. If you would invest 17,760 in Akcansa Cimento Sanayi on November 4, 2024 and sell it today you would earn a total of 3,060 from holding Akcansa Cimento Sanayi or generate 17.23% 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. Akcansa Cimento Sanayi
Performance |
| Timeline |
| Gentas Genel Metal |
| Akcansa Cimento Sanayi |
Gentas Genel and Akcansa Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Akcansa Cimento
The main advantage of trading using opposite Gentas Genel and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Akcansa Cimento 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 Akcansa Cimento will offset losses from the drop in Akcansa Cimento's long position.| Gentas Genel vs. Sodas Sodyum Sanayi | Gentas Genel vs. Silverline Endustri ve | Gentas Genel vs. KOC METALURJI | Gentas Genel vs. Koza Anadolu Metal |
| Akcansa Cimento vs. Cuhadaroglu Metal Sanayi | Akcansa Cimento vs. Koza Anadolu Metal | Akcansa Cimento vs. CEO Event Medya | Akcansa Cimento vs. E Data Teknoloji Pazarlama |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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