Correlation Between Gentas Genel and Petrokent Turizm
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Petrokent Turizm 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 Petrokent Turizm 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 Petrokent Turizm AS, you can compare the effects of market volatilities on Gentas Genel and Petrokent Turizm 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 Petrokent Turizm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Petrokent Turizm.
Diversification Opportunities for Gentas Genel and Petrokent Turizm
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gentas and Petrokent is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Petrokent Turizm AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrokent Turizm 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 Petrokent Turizm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrokent Turizm has no effect on the direction of Gentas Genel i.e., Gentas Genel and Petrokent Turizm go up and down completely randomly.
Pair Corralation between Gentas Genel and Petrokent Turizm
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.67 times more return on investment than Petrokent Turizm. However, Gentas Genel Metal is 1.5 times less risky than Petrokent Turizm. It trades about 0.61 of its potential returns per unit of risk. Petrokent Turizm AS is currently generating about 0.07 per unit of risk. If you would invest 764.00 in Gentas Genel Metal on September 15, 2024 and sell it today you would earn a total of 184.00 from holding Gentas Genel Metal or generate 24.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Petrokent Turizm AS
Performance |
| Timeline |
| Gentas Genel Metal |
| Petrokent Turizm |
Gentas Genel and Petrokent Turizm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Petrokent Turizm
The main advantage of trading using opposite Gentas Genel and Petrokent Turizm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Petrokent Turizm 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 Petrokent Turizm will offset losses from the drop in Petrokent Turizm's long position.| Gentas Genel vs. Ege Endustri ve | Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Turkiye Garanti Bankasi | Gentas Genel vs. Turkish Airlines |
| Petrokent Turizm vs. MEGA METAL | Petrokent Turizm vs. Gentas Genel Metal | Petrokent Turizm vs. Politeknik Metal Sanayi | Petrokent Turizm vs. Koza Anadolu 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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