Correlation Between Gentas Genel and ICU Girisim
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and ICU Girisim 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 ICU Girisim 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 ICU Girisim Sermayesi, you can compare the effects of market volatilities on Gentas Genel and ICU Girisim 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 ICU Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and ICU Girisim.
Diversification Opportunities for Gentas Genel and ICU Girisim
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gentas and ICU is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and ICU Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Girisim Sermayesi 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 ICU Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Girisim Sermayesi has no effect on the direction of Gentas Genel i.e., Gentas Genel and ICU Girisim go up and down completely randomly.
Pair Corralation between Gentas Genel and ICU Girisim
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.42 times more return on investment than ICU Girisim. However, Gentas Genel Metal is 2.4 times less risky than ICU Girisim. It trades about 0.62 of its potential returns per unit of risk. ICU Girisim Sermayesi is currently generating about 0.1 per unit of risk. If you would invest 763.00 in Gentas Genel Metal on September 19, 2024 and sell it today you would earn a total of 192.00 from holding Gentas Genel Metal or generate 25.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gentas Genel Metal vs. ICU Girisim Sermayesi
Performance |
| Timeline |
| Gentas Genel Metal |
| ICU Girisim Sermayesi |
Gentas Genel and ICU Girisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and ICU Girisim
The main advantage of trading using opposite Gentas Genel and ICU Girisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, ICU Girisim 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 ICU Girisim will offset losses from the drop in ICU Girisim's long position.| Gentas Genel vs. Ege Endustri ve | Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Turkiye Garanti Bankasi | Gentas Genel vs. Ford Otomotiv Sanayi |
| ICU Girisim vs. Gentas Genel Metal | ICU Girisim vs. Turkish Airlines | ICU Girisim vs. Qnb Finansbank AS | ICU Girisim vs. Politeknik Metal Sanayi |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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