Correlation Between Gentas Genel and Halk Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Halk Gayrimenkul 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 Halk Gayrimenkul 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 Halk Gayrimenkul Yatirim, you can compare the effects of market volatilities on Gentas Genel and Halk Gayrimenkul 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 Halk Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Halk Gayrimenkul.
Diversification Opportunities for Gentas Genel and Halk Gayrimenkul
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gentas and Halk is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Halk Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halk Gayrimenkul Yatirim 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 Halk Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halk Gayrimenkul Yatirim has no effect on the direction of Gentas Genel i.e., Gentas Genel and Halk Gayrimenkul go up and down completely randomly.
Pair Corralation between Gentas Genel and Halk Gayrimenkul
Assuming the 90 days trading horizon Gentas Genel is expected to generate 1.03 times less return on investment than Halk Gayrimenkul. But when comparing it to its historical volatility, Gentas Genel Metal is 1.02 times less risky than Halk Gayrimenkul. It trades about 0.02 of its potential returns per unit of risk. Halk Gayrimenkul Yatirim is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 253.00 in Halk Gayrimenkul Yatirim on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Halk Gayrimenkul Yatirim or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Halk Gayrimenkul Yatirim
Performance |
| Timeline |
| Gentas Genel Metal |
| Halk Gayrimenkul Yatirim |
Gentas Genel and Halk Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Halk Gayrimenkul
The main advantage of trading using opposite Gentas Genel and Halk Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Halk Gayrimenkul 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 Halk Gayrimenkul will offset losses from the drop in Halk Gayrimenkul's long position.| Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Koc Holding AS | Gentas Genel vs. Arcelik AS | Gentas Genel vs. Turkiye Garanti Bankasi |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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