Correlation Between Gentas Genel and Iz Hayvancilik
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Iz Hayvancilik 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 Iz Hayvancilik 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 Iz Hayvancilik Tarim, you can compare the effects of market volatilities on Gentas Genel and Iz Hayvancilik 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 Iz Hayvancilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Iz Hayvancilik.
Diversification Opportunities for Gentas Genel and Iz Hayvancilik
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gentas and IZINV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Iz Hayvancilik Tarim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iz Hayvancilik Tarim 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 Iz Hayvancilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iz Hayvancilik Tarim has no effect on the direction of Gentas Genel i.e., Gentas Genel and Iz Hayvancilik go up and down completely randomly.
Pair Corralation between Gentas Genel and Iz Hayvancilik
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.2 times more return on investment than Iz Hayvancilik. However, Gentas Genel is 1.2 times more volatile than Iz Hayvancilik Tarim. It trades about 0.62 of its potential returns per unit of risk. Iz Hayvancilik Tarim is currently generating about 0.0 per unit of risk. If you would invest 787.00 in Gentas Genel Metal on September 20, 2024 and sell it today you would earn a total of 190.00 from holding Gentas Genel Metal or generate 24.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Iz Hayvancilik Tarim
Performance |
| Timeline |
| Gentas Genel Metal |
| Iz Hayvancilik Tarim |
Gentas Genel and Iz Hayvancilik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Iz Hayvancilik
The main advantage of trading using opposite Gentas Genel and Iz Hayvancilik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Iz Hayvancilik 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 Iz Hayvancilik will offset losses from the drop in Iz Hayvancilik'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 |
| Iz Hayvancilik vs. Cuhadaroglu Metal Sanayi | Iz Hayvancilik vs. Sodas Sodyum Sanayi | Iz Hayvancilik vs. Trabzonspor Sportif Yatirim | Iz Hayvancilik 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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