Correlation Between Gentas Genel and Burcelik Vana
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Burcelik Vana 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 Burcelik Vana 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 Burcelik Vana Sanayi, you can compare the effects of market volatilities on Gentas Genel and Burcelik Vana 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 Burcelik Vana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Burcelik Vana.
Diversification Opportunities for Gentas Genel and Burcelik Vana
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gentas and Burcelik is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Burcelik Vana Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burcelik Vana 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 Burcelik Vana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burcelik Vana Sanayi has no effect on the direction of Gentas Genel i.e., Gentas Genel and Burcelik Vana go up and down completely randomly.
Pair Corralation between Gentas Genel and Burcelik Vana
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 2.32 times more return on investment than Burcelik Vana. However, Gentas Genel is 2.32 times more volatile than Burcelik Vana Sanayi. It trades about -0.11 of its potential returns per unit of risk. Burcelik Vana Sanayi is currently generating about -0.3 per unit of risk. If you would invest 1,173 in Gentas Genel Metal on November 6, 2024 and sell it today you would lose (92.00) from holding Gentas Genel Metal or give up 7.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Burcelik Vana Sanayi
Performance |
| Timeline |
| Gentas Genel Metal |
| Burcelik Vana Sanayi |
Gentas Genel and Burcelik Vana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Burcelik Vana
The main advantage of trading using opposite Gentas Genel and Burcelik Vana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Burcelik Vana 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 Burcelik Vana will offset losses from the drop in Burcelik Vana's long position.| Gentas Genel vs. Sodas Sodyum Sanayi | Gentas Genel vs. CEO Event Medya | Gentas Genel vs. Creditwest Faktoring AS | Gentas Genel vs. Bms Birlesik Metal |
| Burcelik Vana vs. Bms Birlesik Metal | Burcelik Vana vs. Sodas Sodyum Sanayi | Burcelik Vana vs. Mackolik Internet Hizmetleri | Burcelik Vana vs. Akcansa Cimento Sanayi |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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