Correlation Between Gentas Genel and TGS Dis
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and TGS Dis 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 TGS Dis 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 TGS Dis Ticaret, you can compare the effects of market volatilities on Gentas Genel and TGS Dis 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 TGS Dis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and TGS Dis.
Diversification Opportunities for Gentas Genel and TGS Dis
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gentas and TGS is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and TGS Dis Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGS Dis Ticaret 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 TGS Dis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGS Dis Ticaret has no effect on the direction of Gentas Genel i.e., Gentas Genel and TGS Dis go up and down completely randomly.
Pair Corralation between Gentas Genel and TGS Dis
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.08 times more return on investment than TGS Dis. However, Gentas Genel is 1.08 times more volatile than TGS Dis Ticaret. It trades about 0.26 of its potential returns per unit of risk. TGS Dis Ticaret is currently generating about 0.02 per unit of risk. If you would invest 750.00 in Gentas Genel Metal on August 27, 2024 and sell it today you would earn a total of 87.00 from holding Gentas Genel Metal or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. TGS Dis Ticaret
Performance |
| Timeline |
| Gentas Genel Metal |
| TGS Dis Ticaret |
Gentas Genel and TGS Dis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and TGS Dis
The main advantage of trading using opposite Gentas Genel and TGS Dis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, TGS Dis 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 TGS Dis will offset losses from the drop in TGS Dis' long position.| Gentas Genel vs. Datagate Bilgisayar Malzemeleri | Gentas Genel vs. Creditwest Faktoring AS | Gentas Genel vs. Cuhadaroglu Metal Sanayi | Gentas Genel vs. Politeknik Metal Sanayi |
| TGS Dis vs. Bms Birlesik Metal | TGS Dis vs. Gentas Genel Metal | TGS Dis vs. Trabzonspor Sportif Yatirim | TGS Dis vs. Akcansa Cimento Sanayi |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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