Correlation Between Galatasaray Sportif and Gentas Genel

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Galatasaray Sportif and Gentas Genel 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 Galatasaray Sportif and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galatasaray Sportif Sinai and Gentas Genel Metal, you can compare the effects of market volatilities on Galatasaray Sportif and Gentas Genel 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 Galatasaray Sportif with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galatasaray Sportif and Gentas Genel.

Diversification Opportunities for Galatasaray Sportif and Gentas Genel

0.46
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Galatasaray and Gentas is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and Gentas Genel Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentas Genel Metal and Galatasaray Sportif 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 Galatasaray Sportif Sinai are associated (or correlated) with Gentas Genel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentas Genel Metal has no effect on the direction of Galatasaray Sportif i.e., Galatasaray Sportif and Gentas Genel go up and down completely randomly.

Pair Corralation between Galatasaray Sportif and Gentas Genel

Assuming the 90 days trading horizon Galatasaray Sportif Sinai is expected to under-perform the Gentas Genel. But the stock apears to be less risky and, when comparing its historical volatility, Galatasaray Sportif Sinai is 1.38 times less risky than Gentas Genel. The stock trades about -0.06 of its potential returns per unit of risk. The Gentas Genel Metal is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  750.00  in Gentas Genel Metal on August 27, 2024 and sell it today you would earn a total of  87.00  from holding Gentas Genel Metal or generate 11.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Galatasaray Sportif Sinai  vs.  Gentas Genel Metal

 Performance 
       Timeline  
Galatasaray Sportif Sinai 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Galatasaray Sportif Sinai has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
Gentas Genel Metal 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Gentas Genel Metal are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Gentas Genel may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Galatasaray Sportif and Gentas Genel Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Galatasaray Sportif and Gentas Genel

The main advantage of trading using opposite Galatasaray Sportif and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galatasaray Sportif position performs unexpectedly, Gentas Genel 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 Gentas Genel will offset losses from the drop in Gentas Genel's long position.
The idea behind Galatasaray Sportif Sinai and Gentas Genel Metal pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Commodity Directory
Find actively traded commodities issued by global exchanges
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Fundamental Analysis
View fundamental data based on most recent published financial statements
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios