Correlation Between Gentas Genel and Nurol Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Nurol Gayrimenkul 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 Nurol Gayrimenkul 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 Nurol Gayrimenkul Yatirim, you can compare the effects of market volatilities on Gentas Genel and Nurol Gayrimenkul 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 Nurol Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Nurol Gayrimenkul.
Diversification Opportunities for Gentas Genel and Nurol Gayrimenkul
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gentas and Nurol is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Nurol Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nurol Gayrimenkul Yatirim 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 Nurol Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nurol Gayrimenkul Yatirim has no effect on the direction of Gentas Genel i.e., Gentas Genel and Nurol Gayrimenkul go up and down completely randomly.
Pair Corralation between Gentas Genel and Nurol Gayrimenkul
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.21 times more return on investment than Nurol Gayrimenkul. However, Gentas Genel is 1.21 times more volatile than Nurol Gayrimenkul Yatirim. It trades about -0.04 of its potential returns per unit of risk. Nurol Gayrimenkul Yatirim is currently generating about -0.09 per unit of risk. If you would invest 1,173 in Gentas Genel Metal on November 7, 2024 and sell it today you would lose (43.00) from holding Gentas Genel Metal or give up 3.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Nurol Gayrimenkul Yatirim
Performance |
| Timeline |
| Gentas Genel Metal |
| Nurol Gayrimenkul Yatirim |
Gentas Genel and Nurol Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Nurol Gayrimenkul
The main advantage of trading using opposite Gentas Genel and Nurol Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Nurol Gayrimenkul 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 Nurol Gayrimenkul will offset losses from the drop in Nurol Gayrimenkul'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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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