Correlation Between Gentas Genel and Marshall Boya
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Marshall Boya 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 Marshall Boya 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 Marshall Boya ve, you can compare the effects of market volatilities on Gentas Genel and Marshall Boya 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 Marshall Boya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Marshall Boya.
Diversification Opportunities for Gentas Genel and Marshall Boya
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gentas and Marshall is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Marshall Boya ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marshall Boya ve 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 Marshall Boya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marshall Boya ve has no effect on the direction of Gentas Genel i.e., Gentas Genel and Marshall Boya go up and down completely randomly.
Pair Corralation between Gentas Genel and Marshall Boya
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.77 times more return on investment than Marshall Boya. However, Gentas Genel Metal is 1.3 times less risky than Marshall Boya. It trades about -0.02 of its potential returns per unit of risk. Marshall Boya ve is currently generating about -0.07 per unit of risk. If you would invest 960.00 in Gentas Genel Metal on August 27, 2024 and sell it today you would lose (123.00) from holding Gentas Genel Metal or give up 12.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Marshall Boya ve
Performance |
| Timeline |
| Gentas Genel Metal |
| Marshall Boya ve |
Gentas Genel and Marshall Boya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Marshall Boya
The main advantage of trading using opposite Gentas Genel and Marshall Boya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Marshall Boya 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 Marshall Boya will offset losses from the drop in Marshall Boya's long position.| Gentas Genel vs. Politeknik Metal Sanayi | Gentas Genel vs. Turkiye Kalkinma Bankasi | Gentas Genel vs. Borlease Otomotiv AS | Gentas Genel vs. Cuhadaroglu Metal Sanayi |
| Marshall Boya vs. Akbank TAS | Marshall Boya vs. Silverline Endustri ve | Marshall Boya vs. Gentas Genel Metal | Marshall Boya 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |