Correlation Between Gentas Genel and Verusaturk Girisim
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Verusaturk Girisim 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 Verusaturk Girisim 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 Verusaturk Girisim Sermayesi, you can compare the effects of market volatilities on Gentas Genel and Verusaturk Girisim 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 Verusaturk Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Verusaturk Girisim.
Diversification Opportunities for Gentas Genel and Verusaturk Girisim
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gentas and Verusaturk is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Verusaturk Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verusaturk Girisim 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 Verusaturk Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verusaturk Girisim has no effect on the direction of Gentas Genel i.e., Gentas Genel and Verusaturk Girisim go up and down completely randomly.
Pair Corralation between Gentas Genel and Verusaturk Girisim
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.0 times more return on investment than Verusaturk Girisim. However, Gentas Genel is 1.0 times more volatile than Verusaturk Girisim Sermayesi. It trades about 0.08 of its potential returns per unit of risk. Verusaturk Girisim Sermayesi is currently generating about 0.03 per unit of risk. If you would invest 399.00 in Gentas Genel Metal on October 25, 2024 and sell it today you would earn a total of 688.00 from holding Gentas Genel Metal or generate 172.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentas Genel Metal vs. Verusaturk Girisim Sermayesi
Performance |
| Timeline |
| Gentas Genel Metal |
| Verusaturk Girisim |
Gentas Genel and Verusaturk Girisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Verusaturk Girisim
The main advantage of trading using opposite Gentas Genel and Verusaturk Girisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Verusaturk Girisim 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 Verusaturk Girisim will offset losses from the drop in Verusaturk Girisim'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 |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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