Correlation Between Gentas Genel and Ekiz Kimya
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Ekiz Kimya 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 Ekiz Kimya 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 Ekiz Kimya Sanayi, you can compare the effects of market volatilities on Gentas Genel and Ekiz Kimya 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 Ekiz Kimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Ekiz Kimya.
Diversification Opportunities for Gentas Genel and Ekiz Kimya
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gentas and Ekiz is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Ekiz Kimya Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekiz Kimya 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 Ekiz Kimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekiz Kimya Sanayi has no effect on the direction of Gentas Genel i.e., Gentas Genel and Ekiz Kimya go up and down completely randomly.
Pair Corralation between Gentas Genel and Ekiz Kimya
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 2.51 times more return on investment than Ekiz Kimya. However, Gentas Genel is 2.51 times more volatile than Ekiz Kimya Sanayi. It trades about 0.16 of its potential returns per unit of risk. Ekiz Kimya Sanayi is currently generating about -0.24 per unit of risk. If you would invest 965.00 in Gentas Genel Metal on October 25, 2024 and sell it today you would earn a total of 122.00 from holding Gentas Genel Metal or generate 12.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Ekiz Kimya Sanayi
Performance |
| Timeline |
| Gentas Genel Metal |
| Ekiz Kimya Sanayi |
Gentas Genel and Ekiz Kimya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Ekiz Kimya
The main advantage of trading using opposite Gentas Genel and Ekiz Kimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Ekiz Kimya 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 Ekiz Kimya will offset losses from the drop in Ekiz Kimya's long position.| Gentas Genel vs. Koc Holding AS | Gentas Genel vs. Turkiye Is Bankasi | Gentas Genel vs. Turkiye Is Bankasi | Gentas Genel vs. Turkiye Garanti Bankasi |
| Ekiz Kimya vs. Politeknik Metal Sanayi | Ekiz Kimya vs. MEGA METAL | Ekiz Kimya vs. Sekerbank TAS | Ekiz Kimya 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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