Correlation Between Gentas Genel and Turkiye Kalkinma
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Turkiye Kalkinma 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 Turkiye Kalkinma 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 Turkiye Kalkinma Bankasi, you can compare the effects of market volatilities on Gentas Genel and Turkiye Kalkinma 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 Turkiye Kalkinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Turkiye Kalkinma.
Diversification Opportunities for Gentas Genel and Turkiye Kalkinma
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gentas and Turkiye is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Turkiye Kalkinma Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Kalkinma Bankasi 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 Turkiye Kalkinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Kalkinma Bankasi has no effect on the direction of Gentas Genel i.e., Gentas Genel and Turkiye Kalkinma go up and down completely randomly.
Pair Corralation between Gentas Genel and Turkiye Kalkinma
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 2.5 times more return on investment than Turkiye Kalkinma. However, Gentas Genel is 2.5 times more volatile than Turkiye Kalkinma Bankasi. It trades about 0.0 of its potential returns per unit of risk. Turkiye Kalkinma Bankasi is currently generating about -0.27 per unit of risk. If you would invest 1,138 in Gentas Genel Metal on November 8, 2024 and sell it today you would lose (8.00) from holding Gentas Genel Metal or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Turkiye Kalkinma Bankasi
Performance |
| Timeline |
| Gentas Genel Metal |
| Turkiye Kalkinma Bankasi |
Gentas Genel and Turkiye Kalkinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Turkiye Kalkinma
The main advantage of trading using opposite Gentas Genel and Turkiye Kalkinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Turkiye Kalkinma 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 Turkiye Kalkinma will offset losses from the drop in Turkiye Kalkinma's long position.| Gentas Genel vs. MEGA METAL | Gentas Genel vs. KOC METALURJI | Gentas Genel vs. Koza Anadolu Metal | Gentas Genel vs. Turkish Airlines |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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