Correlation Between Gentas Genel and Datagate Bilgisayar
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Datagate Bilgisayar 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 Datagate Bilgisayar 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 Datagate Bilgisayar Malzemeleri, you can compare the effects of market volatilities on Gentas Genel and Datagate Bilgisayar 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 Datagate Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Datagate Bilgisayar.
Diversification Opportunities for Gentas Genel and Datagate Bilgisayar
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gentas and Datagate is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Datagate Bilgisayar Malzemeler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datagate Bilgisayar 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 Datagate Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datagate Bilgisayar has no effect on the direction of Gentas Genel i.e., Gentas Genel and Datagate Bilgisayar go up and down completely randomly.
Pair Corralation between Gentas Genel and Datagate Bilgisayar
Assuming the 90 days trading horizon Gentas Genel Metal is expected to under-perform the Datagate Bilgisayar. But the stock apears to be less risky and, when comparing its historical volatility, Gentas Genel Metal is 1.63 times less risky than Datagate Bilgisayar. The stock trades about 0.0 of its potential returns per unit of risk. The Datagate Bilgisayar Malzemeleri is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,750 in Datagate Bilgisayar Malzemeleri on August 27, 2024 and sell it today you would earn a total of 1,462 from holding Datagate Bilgisayar Malzemeleri or generate 53.16% 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. Datagate Bilgisayar Malzemeler
Performance |
| Timeline |
| Gentas Genel Metal |
| Datagate Bilgisayar |
Gentas Genel and Datagate Bilgisayar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Datagate Bilgisayar
The main advantage of trading using opposite Gentas Genel and Datagate Bilgisayar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Datagate Bilgisayar 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 Datagate Bilgisayar will offset losses from the drop in Datagate Bilgisayar's long position.| Gentas Genel vs. Datagate Bilgisayar Malzemeleri | Gentas Genel vs. Creditwest Faktoring AS | Gentas Genel vs. Cuhadaroglu Metal Sanayi | Gentas Genel vs. Politeknik Metal Sanayi |
| Datagate Bilgisayar vs. Politeknik Metal Sanayi | Datagate Bilgisayar vs. Creditwest Faktoring AS | Datagate Bilgisayar vs. Silverline Endustri ve | Datagate Bilgisayar vs. ICBC Turkey Bank |
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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