Correlation Between Gentas Genel and Ufuk Yatirim
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Ufuk Yatirim 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 Ufuk Yatirim 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 Ufuk Yatirim Yonetim, you can compare the effects of market volatilities on Gentas Genel and Ufuk Yatirim 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 Ufuk Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Ufuk Yatirim.
Diversification Opportunities for Gentas Genel and Ufuk Yatirim
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gentas and Ufuk is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Ufuk Yatirim Yonetim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ufuk Yatirim Yonetim 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 Ufuk Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ufuk Yatirim Yonetim has no effect on the direction of Gentas Genel i.e., Gentas Genel and Ufuk Yatirim go up and down completely randomly.
Pair Corralation between Gentas Genel and Ufuk Yatirim
Assuming the 90 days trading horizon Gentas Genel is expected to generate 2.8 times less return on investment than Ufuk Yatirim. But when comparing it to its historical volatility, Gentas Genel Metal is 1.73 times less risky than Ufuk Yatirim. It trades about 0.02 of its potential returns per unit of risk. Ufuk Yatirim Yonetim is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 44,350 in Ufuk Yatirim Yonetim on September 3, 2024 and sell it today you would earn a total of 4,750 from holding Ufuk Yatirim Yonetim or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Ufuk Yatirim Yonetim
Performance |
| Timeline |
| Gentas Genel Metal |
| Ufuk Yatirim Yonetim |
Gentas Genel and Ufuk Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Ufuk Yatirim
The main advantage of trading using opposite Gentas Genel and Ufuk Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Ufuk Yatirim 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 Ufuk Yatirim will offset losses from the drop in Ufuk Yatirim's long position.| Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Koc Holding AS | Gentas Genel vs. Arcelik AS | Gentas Genel vs. Turkiye Garanti Bankasi |
| Ufuk Yatirim vs. Gentas Genel Metal | Ufuk Yatirim vs. Koza Anadolu Metal | Ufuk Yatirim vs. Turkish Airlines | Ufuk Yatirim vs. ICBC Turkey Bank |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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