Correlation Between Gentas Genel and Eminis Ambalaj
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Eminis Ambalaj 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 Eminis Ambalaj 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 Eminis Ambalaj Sanayi, you can compare the effects of market volatilities on Gentas Genel and Eminis Ambalaj 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 Eminis Ambalaj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Eminis Ambalaj.
Diversification Opportunities for Gentas Genel and Eminis Ambalaj
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gentas and Eminis is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Eminis Ambalaj Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eminis Ambalaj 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 Eminis Ambalaj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eminis Ambalaj Sanayi has no effect on the direction of Gentas Genel i.e., Gentas Genel and Eminis Ambalaj go up and down completely randomly.
Pair Corralation between Gentas Genel and Eminis Ambalaj
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.48 times more return on investment than Eminis Ambalaj. However, Gentas Genel Metal is 2.1 times less risky than Eminis Ambalaj. It trades about 0.29 of its potential returns per unit of risk. Eminis Ambalaj Sanayi is currently generating about -0.11 per unit of risk. If you would invest 770.00 in Gentas Genel Metal on September 5, 2024 and sell it today you would earn a total of 112.00 from holding Gentas Genel Metal or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Eminis Ambalaj Sanayi
Performance |
| Timeline |
| Gentas Genel Metal |
| Eminis Ambalaj Sanayi |
Gentas Genel and Eminis Ambalaj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Eminis Ambalaj
The main advantage of trading using opposite Gentas Genel and Eminis Ambalaj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Eminis Ambalaj 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 Eminis Ambalaj will offset losses from the drop in Eminis Ambalaj's long position.| Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Arcelik AS | Gentas Genel vs. Turkiye Garanti Bankasi | Gentas Genel vs. Akbank TAS |
| Eminis Ambalaj vs. Politeknik Metal Sanayi | Eminis Ambalaj vs. MEGA METAL | Eminis Ambalaj vs. Datagate Bilgisayar Malzemeleri | Eminis Ambalaj 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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