Correlation Between Gentas Genel and Sodas Sodyum
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Sodas Sodyum 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 Sodas Sodyum 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 Sodas Sodyum Sanayi, you can compare the effects of market volatilities on Gentas Genel and Sodas Sodyum 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 Sodas Sodyum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Sodas Sodyum.
Diversification Opportunities for Gentas Genel and Sodas Sodyum
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gentas and Sodas is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Sodas Sodyum Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sodas Sodyum Sanayi 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 Sodas Sodyum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sodas Sodyum Sanayi has no effect on the direction of Gentas Genel i.e., Gentas Genel and Sodas Sodyum go up and down completely randomly.
Pair Corralation between Gentas Genel and Sodas Sodyum
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 2.78 times more return on investment than Sodas Sodyum. However, Gentas Genel is 2.78 times more volatile than Sodas Sodyum Sanayi. It trades about 0.19 of its potential returns per unit of risk. Sodas Sodyum Sanayi is currently generating about -0.18 per unit of risk. If you would invest 1,010 in Gentas Genel Metal on October 29, 2024 and sell it today you would earn a total of 134.00 from holding Gentas Genel Metal or generate 13.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Sodas Sodyum Sanayi
Performance |
| Timeline |
| Gentas Genel Metal |
| Sodas Sodyum Sanayi |
Gentas Genel and Sodas Sodyum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Sodas Sodyum
The main advantage of trading using opposite Gentas Genel and Sodas Sodyum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Sodas Sodyum 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 Sodas Sodyum will offset losses from the drop in Sodas Sodyum's long position.| Gentas Genel vs. MEGA METAL | Gentas Genel vs. Mackolik Internet Hizmetleri | Gentas Genel vs. Sodas Sodyum Sanayi | Gentas Genel vs. KOC METALURJI |
| Sodas Sodyum vs. Gentas Genel Metal | Sodas Sodyum vs. CEO Event Medya | Sodas Sodyum vs. Datagate Bilgisayar Malzemeleri | Sodas Sodyum vs. Turkiye Kalkinma 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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