Correlation Between Gentas Genel and Temapol Polimer
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Temapol Polimer 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 Temapol Polimer 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 Temapol Polimer Plastik, you can compare the effects of market volatilities on Gentas Genel and Temapol Polimer 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 Temapol Polimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Temapol Polimer.
Diversification Opportunities for Gentas Genel and Temapol Polimer
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gentas and Temapol is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Temapol Polimer Plastik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Temapol Polimer Plastik 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 Temapol Polimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Temapol Polimer Plastik has no effect on the direction of Gentas Genel i.e., Gentas Genel and Temapol Polimer go up and down completely randomly.
Pair Corralation between Gentas Genel and Temapol Polimer
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.5 times more return on investment than Temapol Polimer. However, Gentas Genel is 1.5 times more volatile than Temapol Polimer Plastik. It trades about 0.16 of its potential returns per unit of risk. Temapol Polimer Plastik is currently generating about 0.19 per unit of risk. If you would invest 965.00 in Gentas Genel Metal on October 25, 2024 and sell it today you would earn a total of 122.00 from holding Gentas Genel Metal or generate 12.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gentas Genel Metal vs. Temapol Polimer Plastik
Performance |
| Timeline |
| Gentas Genel Metal |
| Temapol Polimer Plastik |
Gentas Genel and Temapol Polimer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Temapol Polimer
The main advantage of trading using opposite Gentas Genel and Temapol Polimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Temapol Polimer 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 Temapol Polimer will offset losses from the drop in Temapol Polimer'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 |
| Temapol Polimer vs. Gentas Genel Metal | Temapol Polimer vs. Politeknik Metal Sanayi | Temapol Polimer vs. Akbank TAS | Temapol Polimer vs. Mackolik Internet Hizmetleri |
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.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |