Correlation Between Gentas Genel and Yesil Yapi
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Yesil Yapi 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 Yesil Yapi 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 Yesil Yapi Endustrisi, you can compare the effects of market volatilities on Gentas Genel and Yesil Yapi 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 Yesil Yapi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Yesil Yapi.
Diversification Opportunities for Gentas Genel and Yesil Yapi
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gentas and Yesil is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Yesil Yapi Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yapi Endustrisi 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 Yesil Yapi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yapi Endustrisi has no effect on the direction of Gentas Genel i.e., Gentas Genel and Yesil Yapi go up and down completely randomly.
Pair Corralation between Gentas Genel and Yesil Yapi
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.68 times more return on investment than Yesil Yapi. However, Gentas Genel Metal is 1.47 times less risky than Yesil Yapi. It trades about 0.04 of its potential returns per unit of risk. Yesil Yapi Endustrisi is currently generating about -0.01 per unit of risk. If you would invest 816.00 in Gentas Genel Metal on September 1, 2024 and sell it today you would earn a total of 59.00 from holding Gentas Genel Metal or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Gentas Genel Metal vs. Yesil Yapi Endustrisi
Performance |
| Timeline |
| Gentas Genel Metal |
| Yesil Yapi Endustrisi |
Gentas Genel and Yesil Yapi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Yesil Yapi
The main advantage of trading using opposite Gentas Genel and Yesil Yapi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Yesil Yapi 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 Yesil Yapi will offset losses from the drop in Yesil Yapi's long position.| Gentas Genel vs. E Data Teknoloji Pazarlama | Gentas Genel vs. Koza Anadolu Metal | Gentas Genel vs. Turkish Airlines | Gentas Genel vs. MEGA METAL |
| Yesil Yapi vs. Cuhadaroglu Metal Sanayi | Yesil Yapi vs. Trabzonspor Sportif Yatirim | Yesil Yapi vs. Akcansa Cimento Sanayi | Yesil Yapi vs. E Data Teknoloji Pazarlama |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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