Correlation Between Gentas Genel and Aksu Enerji
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Aksu Enerji 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 Aksu Enerji 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 Aksu Enerji ve, you can compare the effects of market volatilities on Gentas Genel and Aksu Enerji 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 Aksu Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Aksu Enerji.
Diversification Opportunities for Gentas Genel and Aksu Enerji
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gentas and Aksu is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Aksu Enerji ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksu Enerji ve 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 Aksu Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksu Enerji ve has no effect on the direction of Gentas Genel i.e., Gentas Genel and Aksu Enerji go up and down completely randomly.
Pair Corralation between Gentas Genel and Aksu Enerji
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.65 times more return on investment than Aksu Enerji. However, Gentas Genel Metal is 1.53 times less risky than Aksu Enerji. It trades about 0.29 of its potential returns per unit of risk. Aksu Enerji ve is currently generating about 0.16 per unit of risk. If you would invest 750.00 in Gentas Genel Metal on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Gentas Genel Metal or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gentas Genel Metal vs. Aksu Enerji ve
Performance |
| Timeline |
| Gentas Genel Metal |
| Aksu Enerji ve |
Gentas Genel and Aksu Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Aksu Enerji
The main advantage of trading using opposite Gentas Genel and Aksu Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Aksu Enerji 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 Aksu Enerji will offset losses from the drop in Aksu Enerji's long position.| Gentas Genel vs. QNB Finans Finansal | Gentas Genel vs. Pamel Yenilenebilir Elektrik | Gentas Genel vs. Brisa Bridgestone Sabanci | Gentas Genel vs. Dogus Gayrimenkul Yatirim |
| Aksu Enerji vs. Cuhadaroglu Metal Sanayi | Aksu Enerji vs. Gentas Genel Metal | Aksu Enerji vs. Turkish Airlines | Aksu Enerji vs. MEGA 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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