Correlation Between Gentas Genel and Tek Art
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Tek Art 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 Tek Art 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 Tek Art Insaat Ticaret, you can compare the effects of market volatilities on Gentas Genel and Tek Art 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 Tek Art. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Tek Art.
Diversification Opportunities for Gentas Genel and Tek Art
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gentas and Tek is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Tek Art Insaat Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tek Art Insaat 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 Tek Art. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tek Art Insaat has no effect on the direction of Gentas Genel i.e., Gentas Genel and Tek Art go up and down completely randomly.
Pair Corralation between Gentas Genel and Tek Art
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.71 times more return on investment than Tek Art. However, Gentas Genel Metal is 1.41 times less risky than Tek Art. It trades about 0.29 of its potential returns per unit of risk. Tek Art Insaat Ticaret is currently generating about -0.07 per unit of risk. If you would invest 750.00 in Gentas Genel Metal on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Gentas Genel Metal or generate 13.33% 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. Tek Art Insaat Ticaret
Performance |
| Timeline |
| Gentas Genel Metal |
| Tek Art Insaat |
Gentas Genel and Tek Art Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Tek Art
The main advantage of trading using opposite Gentas Genel and Tek Art positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Tek Art 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 Tek Art will offset losses from the drop in Tek Art's long position.| Gentas Genel vs. QNB Finans Finansal | Gentas Genel vs. Pamel Yenilenebilir Elektrik | Gentas Genel vs. Brisa Bridgestone Sabanci | Gentas Genel vs. Dogus Gayrimenkul Yatirim |
| Tek Art vs. Turkish Airlines | Tek Art vs. Cuhadaroglu Metal Sanayi | Tek Art vs. Bms Birlesik Metal | Tek Art vs. E Data Teknoloji Pazarlama |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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