Correlation Between Gentas Genel and Guler Yatirim
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Guler Yatirim 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 Guler Yatirim 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 Guler Yatirim Holding, you can compare the effects of market volatilities on Gentas Genel and Guler Yatirim 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 Guler Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Guler Yatirim.
Diversification Opportunities for Gentas Genel and Guler Yatirim
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gentas and Guler is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Guler Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guler Yatirim Holding 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 Guler Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guler Yatirim Holding has no effect on the direction of Gentas Genel i.e., Gentas Genel and Guler Yatirim go up and down completely randomly.
Pair Corralation between Gentas Genel and Guler Yatirim
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.13 times more return on investment than Guler Yatirim. However, Gentas Genel is 1.13 times more volatile than Guler Yatirim Holding. It trades about 0.54 of its potential returns per unit of risk. Guler Yatirim Holding is currently generating about 0.2 per unit of risk. If you would invest 770.00 in Gentas Genel Metal on September 13, 2024 and sell it today you would earn a total of 168.00 from holding Gentas Genel Metal or generate 21.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Guler Yatirim Holding
Performance |
| Timeline |
| Gentas Genel Metal |
| Guler Yatirim Holding |
Gentas Genel and Guler Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Guler Yatirim
The main advantage of trading using opposite Gentas Genel and Guler Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Guler Yatirim 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 Guler Yatirim will offset losses from the drop in Guler Yatirim's long position.| Gentas Genel vs. Turkiye Kalkinma Bankasi | Gentas Genel vs. Turkish Airlines | Gentas Genel vs. Borlease Otomotiv AS | Gentas Genel vs. Koza Anadolu Metal |
| Guler Yatirim vs. Borlease Otomotiv AS | Guler Yatirim vs. Akbank TAS | Guler Yatirim vs. Bms Birlesik Metal | Guler Yatirim 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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