Correlation Between Gentas Genel and Trabzonspor Sportif
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Trabzonspor Sportif 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 Trabzonspor Sportif 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 Trabzonspor Sportif Yatirim, you can compare the effects of market volatilities on Gentas Genel and Trabzonspor Sportif 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 Trabzonspor Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Trabzonspor Sportif.
Diversification Opportunities for Gentas Genel and Trabzonspor Sportif
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gentas and Trabzonspor is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Trabzonspor Sportif Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trabzonspor Sportif 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 Trabzonspor Sportif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trabzonspor Sportif has no effect on the direction of Gentas Genel i.e., Gentas Genel and Trabzonspor Sportif go up and down completely randomly.
Pair Corralation between Gentas Genel and Trabzonspor Sportif
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.94 times more return on investment than Trabzonspor Sportif. However, Gentas Genel Metal is 1.07 times less risky than Trabzonspor Sportif. It trades about 0.13 of its potential returns per unit of risk. Trabzonspor Sportif Yatirim is currently generating about -0.05 per unit of risk. If you would invest 786.00 in Gentas Genel Metal on November 2, 2024 and sell it today you would earn a total of 299.00 from holding Gentas Genel Metal or generate 38.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Trabzonspor Sportif Yatirim
Performance |
| Timeline |
| Gentas Genel Metal |
| Trabzonspor Sportif |
Gentas Genel and Trabzonspor Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Trabzonspor Sportif
The main advantage of trading using opposite Gentas Genel and Trabzonspor Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Trabzonspor Sportif 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 Trabzonspor Sportif will offset losses from the drop in Trabzonspor Sportif's long position.| Gentas Genel vs. Bms Birlesik Metal | Gentas Genel vs. Qnb Finansbank AS | Gentas Genel vs. Cuhadaroglu Metal Sanayi | Gentas Genel vs. CEO Event Medya |
| Trabzonspor Sportif vs. KOC METALURJI | Trabzonspor Sportif vs. Koza Anadolu Metal | Trabzonspor Sportif vs. Cuhadaroglu Metal Sanayi | Trabzonspor Sportif vs. Akbank TAS |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |