Correlation Between Gentas Genel and Baticim Bati
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Baticim Bati 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 Baticim Bati 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 Baticim Bati Anadolu, you can compare the effects of market volatilities on Gentas Genel and Baticim Bati 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 Baticim Bati. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Baticim Bati.
Diversification Opportunities for Gentas Genel and Baticim Bati
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gentas and Baticim is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Baticim Bati Anadolu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baticim Bati Anadolu 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 Baticim Bati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baticim Bati Anadolu has no effect on the direction of Gentas Genel i.e., Gentas Genel and Baticim Bati go up and down completely randomly.
Pair Corralation between Gentas Genel and Baticim Bati
Assuming the 90 days trading horizon Gentas Genel is expected to generate 2.5 times less return on investment than Baticim Bati. But when comparing it to its historical volatility, Gentas Genel Metal is 1.34 times less risky than Baticim Bati. It trades about 0.02 of its potential returns per unit of risk. Baticim Bati Anadolu is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 13,570 in Baticim Bati Anadolu on September 3, 2024 and sell it today you would earn a total of 1,720 from holding Baticim Bati Anadolu or generate 12.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Baticim Bati Anadolu
Performance |
| Timeline |
| Gentas Genel Metal |
| Baticim Bati Anadolu |
Gentas Genel and Baticim Bati Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Baticim Bati
The main advantage of trading using opposite Gentas Genel and Baticim Bati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Baticim Bati 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 Baticim Bati will offset losses from the drop in Baticim Bati's long position.| Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Koc Holding AS | Gentas Genel vs. Arcelik AS | Gentas Genel vs. Turkiye Garanti Bankasi |
| Baticim Bati vs. Gentas Genel Metal | Baticim Bati vs. Koza Anadolu Metal | Baticim Bati vs. MEGA METAL | Baticim Bati vs. Qnb Finansbank 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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