Correlation Between Gentas Genel and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and MEGA METAL 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 MEGA METAL 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 MEGA METAL, you can compare the effects of market volatilities on Gentas Genel and MEGA METAL 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 MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and MEGA METAL.
Diversification Opportunities for Gentas Genel and MEGA METAL
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gentas and MEGA is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL 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 MEGA METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEGA METAL has no effect on the direction of Gentas Genel i.e., Gentas Genel and MEGA METAL go up and down completely randomly.
Pair Corralation between Gentas Genel and MEGA METAL
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.38 times more return on investment than MEGA METAL. However, Gentas Genel is 1.38 times more volatile than MEGA METAL. It trades about 0.13 of its potential returns per unit of risk. MEGA METAL is currently generating about -0.13 per unit of risk. If you would invest 786.00 in Gentas Genel Metal on November 2, 2024 and sell it today you would earn a total of 299.00 from holding Gentas Genel Metal or generate 38.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. MEGA METAL
Performance |
| Timeline |
| Gentas Genel Metal |
| MEGA METAL |
Gentas Genel and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and MEGA METAL
The main advantage of trading using opposite Gentas Genel and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, MEGA METAL 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 MEGA METAL will offset losses from the drop in MEGA METAL's long position.| Gentas Genel vs. Bms Birlesik Metal | Gentas Genel vs. Qnb Finansbank AS | Gentas Genel vs. Cuhadaroglu Metal Sanayi | Gentas Genel vs. CEO Event Medya |
| MEGA METAL vs. Koza Anadolu Metal | MEGA METAL vs. Akcansa Cimento Sanayi | MEGA METAL vs. Politeknik Metal Sanayi | MEGA METAL vs. Bms Birlesik 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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