Correlation Between Gentas Genel and Sekerbank TAS
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Sekerbank TAS 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 Sekerbank TAS 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 Sekerbank TAS, you can compare the effects of market volatilities on Gentas Genel and Sekerbank TAS 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 Sekerbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Sekerbank TAS.
Diversification Opportunities for Gentas Genel and Sekerbank TAS
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gentas and Sekerbank is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Sekerbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekerbank TAS 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 Sekerbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekerbank TAS has no effect on the direction of Gentas Genel i.e., Gentas Genel and Sekerbank TAS go up and down completely randomly.
Pair Corralation between Gentas Genel and Sekerbank TAS
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.03 times more return on investment than Sekerbank TAS. However, Gentas Genel is 1.03 times more volatile than Sekerbank TAS. It trades about 0.25 of its potential returns per unit of risk. Sekerbank TAS is currently generating about 0.05 per unit of risk. If you would invest 734.00 in Gentas Genel Metal on October 25, 2024 and sell it today you would earn a total of 353.00 from holding Gentas Genel Metal or generate 48.09% 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. Sekerbank TAS
Performance |
| Timeline |
| Gentas Genel Metal |
| Sekerbank TAS |
Gentas Genel and Sekerbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Sekerbank TAS
The main advantage of trading using opposite Gentas Genel and Sekerbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Sekerbank TAS 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 Sekerbank TAS will offset losses from the drop in Sekerbank TAS's long position.| Gentas Genel vs. Koc Holding AS | Gentas Genel vs. Turkiye Is Bankasi | Gentas Genel vs. Turkiye Is Bankasi | Gentas Genel vs. Turkiye Garanti Bankasi |
| Sekerbank TAS vs. Turkiye Sinai Kalkinma | Sekerbank TAS vs. Yapi ve Kredi | Sekerbank TAS vs. Kardemir Karabuk Demir | Sekerbank TAS vs. Turkiye Is Bankasi |
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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