Correlation Between Gentas Genel and Dinamik Isi
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Dinamik Isi 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 Dinamik Isi 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 Dinamik Isi Makina, you can compare the effects of market volatilities on Gentas Genel and Dinamik Isi 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 Dinamik Isi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Dinamik Isi.
Diversification Opportunities for Gentas Genel and Dinamik Isi
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gentas and Dinamik is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Dinamik Isi Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dinamik Isi 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 Dinamik Isi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dinamik Isi Makina has no effect on the direction of Gentas Genel i.e., Gentas Genel and Dinamik Isi go up and down completely randomly.
Pair Corralation between Gentas Genel and Dinamik Isi
Assuming the 90 days trading horizon Gentas Genel is expected to generate 1.01 times less return on investment than Dinamik Isi. But when comparing it to its historical volatility, Gentas Genel Metal is 1.43 times less risky than Dinamik Isi. It trades about 0.23 of its potential returns per unit of risk. Dinamik Isi Makina is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,980 in Dinamik Isi Makina on September 2, 2024 and sell it today you would earn a total of 216.00 from holding Dinamik Isi Makina or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Dinamik Isi Makina
Performance |
| Timeline |
| Gentas Genel Metal |
| Dinamik Isi Makina |
Gentas Genel and Dinamik Isi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Dinamik Isi
The main advantage of trading using opposite Gentas Genel and Dinamik Isi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Dinamik Isi 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 Dinamik Isi will offset losses from the drop in Dinamik Isi'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 |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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