Correlation Between Gentas Genel and Mackolik Internet
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Mackolik Internet 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 Mackolik Internet 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 Mackolik Internet Hizmetleri, you can compare the effects of market volatilities on Gentas Genel and Mackolik Internet 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 Mackolik Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Mackolik Internet.
Diversification Opportunities for Gentas Genel and Mackolik Internet
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gentas and Mackolik is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Mackolik Internet Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackolik Internet 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 Mackolik Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackolik Internet has no effect on the direction of Gentas Genel i.e., Gentas Genel and Mackolik Internet go up and down completely randomly.
Pair Corralation between Gentas Genel and Mackolik Internet
Assuming the 90 days trading horizon Gentas Genel is expected to generate 1.57 times less return on investment than Mackolik Internet. In addition to that, Gentas Genel is 1.16 times more volatile than Mackolik Internet Hizmetleri. It trades about 0.07 of its total potential returns per unit of risk. Mackolik Internet Hizmetleri is currently generating about 0.13 per unit of volatility. If you would invest 8,007 in Mackolik Internet Hizmetleri on August 29, 2024 and sell it today you would earn a total of 1,353 from holding Mackolik Internet Hizmetleri or generate 16.9% 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. Mackolik Internet Hizmetleri
Performance |
| Timeline |
| Gentas Genel Metal |
| Mackolik Internet |
Gentas Genel and Mackolik Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Mackolik Internet
The main advantage of trading using opposite Gentas Genel and Mackolik Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Mackolik Internet 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 Mackolik Internet will offset losses from the drop in Mackolik Internet's long position.| Gentas Genel vs. Haci Omer Sabanci | Gentas Genel vs. Turkiye Sise ve | Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Turkiye Garanti Bankasi |
| Mackolik Internet vs. Politeknik Metal Sanayi | Mackolik Internet vs. Koza Anadolu Metal | Mackolik Internet vs. Cuhadaroglu 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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