Correlation Between Gentas Genel and Cemtas Celik
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Cemtas Celik 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 Cemtas Celik 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 Cemtas Celik Makina, you can compare the effects of market volatilities on Gentas Genel and Cemtas Celik 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 Cemtas Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Cemtas Celik.
Diversification Opportunities for Gentas Genel and Cemtas Celik
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gentas and Cemtas is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Cemtas Celik Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtas Celik Makina 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 Cemtas Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtas Celik Makina has no effect on the direction of Gentas Genel i.e., Gentas Genel and Cemtas Celik go up and down completely randomly.
Pair Corralation between Gentas Genel and Cemtas Celik
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.65 times more return on investment than Cemtas Celik. However, Gentas Genel is 1.65 times more volatile than Cemtas Celik Makina. It trades about 0.26 of its potential returns per unit of risk. Cemtas Celik Makina is currently generating about 0.29 per unit of risk. If you would invest 750.00 in Gentas Genel Metal on August 29, 2024 and sell it today you would earn a total of 95.00 from holding Gentas Genel Metal or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gentas Genel Metal vs. Cemtas Celik Makina
Performance |
| Timeline |
| Gentas Genel Metal |
| Cemtas Celik Makina |
Gentas Genel and Cemtas Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Cemtas Celik
The main advantage of trading using opposite Gentas Genel and Cemtas Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Cemtas Celik 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 Cemtas Celik will offset losses from the drop in Cemtas Celik's long position.| Gentas Genel vs. Haci Omer Sabanci | Gentas Genel vs. Turkiye Sise ve | Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Turkiye Garanti Bankasi |
| Cemtas Celik vs. Koza Anadolu Metal | Cemtas Celik vs. Cuhadaroglu Metal Sanayi | Cemtas Celik vs. Turkiye Kalkinma Bankasi | Cemtas Celik vs. Gentas Genel 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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