Correlation Between Gentas Genel and Tumosan
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Tumosan 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 Tumosan 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 Tumosan Motor ve, you can compare the effects of market volatilities on Gentas Genel and Tumosan 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 Tumosan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Tumosan.
Diversification Opportunities for Gentas Genel and Tumosan
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gentas and Tumosan is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Tumosan Motor ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tumosan Motor ve 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 Tumosan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tumosan Motor ve has no effect on the direction of Gentas Genel i.e., Gentas Genel and Tumosan go up and down completely randomly.
Pair Corralation between Gentas Genel and Tumosan
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.85 times more return on investment than Tumosan. However, Gentas Genel Metal is 1.17 times less risky than Tumosan. It trades about 0.07 of its potential returns per unit of risk. Tumosan Motor ve is currently generating about 0.06 per unit of risk. If you would invest 450.00 in Gentas Genel Metal on October 7, 2024 and sell it today you would earn a total of 651.00 from holding Gentas Genel Metal or generate 144.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Tumosan Motor ve
Performance |
| Timeline |
| Gentas Genel Metal |
| Tumosan Motor ve |
Gentas Genel and Tumosan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Tumosan
The main advantage of trading using opposite Gentas Genel and Tumosan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Tumosan 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 Tumosan will offset losses from the drop in Tumosan's long position.| Gentas Genel vs. Koza Anadolu Metal | Gentas Genel vs. ICBC Turkey Bank | Gentas Genel vs. Sodas Sodyum Sanayi | Gentas Genel vs. Cuhadaroglu Metal Sanayi |
| Tumosan vs. E Data Teknoloji Pazarlama | Tumosan vs. Galatasaray Sportif Sinai | Tumosan vs. Bms Birlesik Metal | Tumosan vs. Cuhadaroglu Metal 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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