Correlation Between Gentas Genel and Hedef Holdings
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Hedef Holdings 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 Hedef Holdings 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 Hedef Holdings AS, you can compare the effects of market volatilities on Gentas Genel and Hedef Holdings 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 Hedef Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Hedef Holdings.
Diversification Opportunities for Gentas Genel and Hedef Holdings
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gentas and Hedef is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Hedef Holdings AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedef Holdings AS 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 Hedef Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedef Holdings AS has no effect on the direction of Gentas Genel i.e., Gentas Genel and Hedef Holdings go up and down completely randomly.
Pair Corralation between Gentas Genel and Hedef Holdings
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.85 times more return on investment than Hedef Holdings. However, Gentas Genel Metal is 1.17 times less risky than Hedef Holdings. It trades about 0.04 of its potential returns per unit of risk. Hedef Holdings AS is currently generating about -0.06 per unit of risk. If you would invest 806.00 in Gentas Genel Metal on September 12, 2024 and sell it today you would earn a total of 132.00 from holding Gentas Genel Metal or generate 16.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Hedef Holdings AS
Performance |
| Timeline |
| Gentas Genel Metal |
| Hedef Holdings AS |
Gentas Genel and Hedef Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Hedef Holdings
The main advantage of trading using opposite Gentas Genel and Hedef Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Hedef Holdings 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 Hedef Holdings will offset losses from the drop in Hedef Holdings' 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 |
| Hedef Holdings vs. Qnb Finansbank AS | Hedef Holdings vs. Bms Birlesik Metal | Hedef Holdings vs. Politeknik Metal Sanayi | Hedef Holdings 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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