Correlation Between ICU Girisim and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both ICU Girisim 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 ICU Girisim and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Girisim Sermayesi and Gentas Genel Metal, you can compare the effects of market volatilities on ICU Girisim 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 ICU Girisim with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Girisim and Gentas Genel.
Diversification Opportunities for ICU Girisim and Gentas Genel
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICU and Gentas is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding ICU Girisim Sermayesi 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 ICU Girisim 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 ICU Girisim Sermayesi 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 ICU Girisim i.e., ICU Girisim and Gentas Genel go up and down completely randomly.
Pair Corralation between ICU Girisim and Gentas Genel
Assuming the 90 days trading horizon ICU Girisim Sermayesi is expected to generate 1.37 times more return on investment than Gentas Genel. However, ICU Girisim is 1.37 times more volatile than Gentas Genel Metal. It trades about 0.1 of its potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.06 per unit of risk. If you would invest 440.00 in ICU Girisim Sermayesi on September 19, 2024 and sell it today you would earn a total of 2,318 from holding ICU Girisim Sermayesi or generate 526.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
ICU Girisim Sermayesi vs. Gentas Genel Metal
Performance |
| Timeline |
| ICU Girisim Sermayesi |
| Gentas Genel Metal |
ICU Girisim and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU Girisim and Gentas Genel
The main advantage of trading using opposite ICU Girisim and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Girisim 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.| ICU Girisim vs. Gentas Genel Metal | ICU Girisim vs. Turkish Airlines | ICU Girisim vs. Qnb Finansbank AS | ICU Girisim vs. Politeknik Metal Sanayi |
| Gentas Genel vs. Bms Birlesik Metal | Gentas Genel vs. Trabzonspor Sportif Yatirim | Gentas Genel vs. Creditwest Faktoring AS | Gentas Genel vs. Sekerbank 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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