Correlation Between Gentas Genel and Smart Gunes
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Smart Gunes 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 Smart Gunes 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 Smart Gunes Enerjisi, you can compare the effects of market volatilities on Gentas Genel and Smart Gunes 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 Smart Gunes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Smart Gunes.
Diversification Opportunities for Gentas Genel and Smart Gunes
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gentas and Smart is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Smart Gunes Enerjisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Gunes Enerjisi 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 Smart Gunes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Gunes Enerjisi has no effect on the direction of Gentas Genel i.e., Gentas Genel and Smart Gunes go up and down completely randomly.
Pair Corralation between Gentas Genel and Smart Gunes
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.63 times more return on investment than Smart Gunes. However, Gentas Genel Metal is 1.59 times less risky than Smart Gunes. It trades about 0.05 of its potential returns per unit of risk. Smart Gunes Enerjisi is currently generating about 0.01 per unit of risk. If you would invest 505.00 in Gentas Genel Metal on September 4, 2024 and sell it today you would earn a total of 384.00 from holding Gentas Genel Metal or generate 76.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Gentas Genel Metal vs. Smart Gunes Enerjisi
Performance |
| Timeline |
| Gentas Genel Metal |
| Smart Gunes Enerjisi |
Gentas Genel and Smart Gunes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Smart Gunes
The main advantage of trading using opposite Gentas Genel and Smart Gunes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Smart Gunes 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 Smart Gunes will offset losses from the drop in Smart Gunes' long position.| Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Arcelik AS | Gentas Genel vs. Turkiye Garanti Bankasi | Gentas Genel vs. Akbank TAS |
| Smart Gunes vs. Silverline Endustri ve | Smart Gunes vs. Elite Naturel Organik | Smart Gunes vs. Frigo Pak Gida Maddeleri |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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