Correlation Between Gentas Genel and Birlik Mensucat
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Birlik Mensucat 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 Birlik Mensucat 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 Birlik Mensucat Ticaret, you can compare the effects of market volatilities on Gentas Genel and Birlik Mensucat 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 Birlik Mensucat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Birlik Mensucat.
Diversification Opportunities for Gentas Genel and Birlik Mensucat
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gentas and Birlik is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Birlik Mensucat Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birlik Mensucat 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 Birlik Mensucat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birlik Mensucat Ticaret has no effect on the direction of Gentas Genel i.e., Gentas Genel and Birlik Mensucat go up and down completely randomly.
Pair Corralation between Gentas Genel and Birlik Mensucat
Assuming the 90 days trading horizon Gentas Genel is expected to generate 3.39 times less return on investment than Birlik Mensucat. But when comparing it to its historical volatility, Gentas Genel Metal is 2.65 times less risky than Birlik Mensucat. It trades about 0.23 of its potential returns per unit of risk. Birlik Mensucat Ticaret is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 489.00 in Birlik Mensucat Ticaret on September 2, 2024 and sell it today you would earn a total of 200.00 from holding Birlik Mensucat Ticaret or generate 40.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Birlik Mensucat Ticaret
Performance |
| Timeline |
| Gentas Genel Metal |
| Birlik Mensucat Ticaret |
Gentas Genel and Birlik Mensucat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Birlik Mensucat
The main advantage of trading using opposite Gentas Genel and Birlik Mensucat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Birlik Mensucat 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 Birlik Mensucat will offset losses from the drop in Birlik Mensucat's long position.| Gentas Genel vs. Cuhadaroglu Metal Sanayi | Gentas Genel vs. Bms Birlesik Metal | Gentas Genel vs. Creditwest Faktoring AS | Gentas Genel vs. Koza Anadolu Metal |
| Birlik Mensucat vs. Politeknik Metal Sanayi | Birlik Mensucat vs. Bms Birlesik Metal | Birlik Mensucat vs. Turkiye Kalkinma Bankasi | Birlik Mensucat vs. Koza Anadolu 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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