Correlation Between Gentas Genel and Frigo Pak
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Frigo Pak 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 Frigo Pak 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 Frigo Pak Gida Maddeleri, you can compare the effects of market volatilities on Gentas Genel and Frigo Pak 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 Frigo Pak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Frigo Pak.
Diversification Opportunities for Gentas Genel and Frigo Pak
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gentas and Frigo is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Frigo Pak Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frigo Pak Gida 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 Frigo Pak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frigo Pak Gida has no effect on the direction of Gentas Genel i.e., Gentas Genel and Frigo Pak go up and down completely randomly.
Pair Corralation between Gentas Genel and Frigo Pak
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.26 times more return on investment than Frigo Pak. However, Gentas Genel is 1.26 times more volatile than Frigo Pak Gida Maddeleri. It trades about 0.32 of its potential returns per unit of risk. Frigo Pak Gida Maddeleri is currently generating about -0.06 per unit of risk. If you would invest 817.00 in Gentas Genel Metal on September 12, 2024 and sell it today you would earn a total of 130.00 from holding Gentas Genel Metal or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gentas Genel Metal vs. Frigo Pak Gida Maddeleri
Performance |
| Timeline |
| Gentas Genel Metal |
| Frigo Pak Gida |
Gentas Genel and Frigo Pak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Frigo Pak
The main advantage of trading using opposite Gentas Genel and Frigo Pak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Frigo Pak 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 Frigo Pak will offset losses from the drop in Frigo Pak's long position.| Gentas Genel vs. Ege Endustri ve | Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Turkiye Garanti Bankasi | Gentas Genel vs. Turkish Airlines |
| Frigo Pak vs. Gentas Genel Metal | Frigo Pak vs. Akcansa Cimento Sanayi | Frigo Pak vs. Sekerbank TAS | Frigo Pak vs. E Data Teknoloji Pazarlama |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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