Correlation Between Turkiye Is and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Turkiye Is 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 Turkiye Is and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Is Bankasi and Gentas Genel Metal, you can compare the effects of market volatilities on Turkiye Is 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 Turkiye Is with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and Gentas Genel.
Diversification Opportunities for Turkiye Is and Gentas Genel
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Turkiye and Gentas is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi 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 Turkiye Is 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 Turkiye Is Bankasi 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 Turkiye Is i.e., Turkiye Is and Gentas Genel go up and down completely randomly.
Pair Corralation between Turkiye Is and Gentas Genel
Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to under-perform the Gentas Genel. In addition to that, Turkiye Is is 1.49 times more volatile than Gentas Genel Metal. It trades about -0.08 of its total potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.32 per unit of volatility. If you would invest 817.00 in Gentas Genel Metal on September 12, 2024 and sell it today you would earn a total of 130.00 from holding Gentas Genel Metal or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Is Bankasi vs. Gentas Genel Metal
Performance |
| Timeline |
| Turkiye Is Bankasi |
| Gentas Genel Metal |
Turkiye Is and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Is and Gentas Genel
The main advantage of trading using opposite Turkiye Is and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Is 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.| Turkiye Is vs. Akbank TAS | Turkiye Is vs. Qnb Finansbank AS | Turkiye Is vs. Cuhadaroglu Metal Sanayi | Turkiye Is vs. Borlease Otomotiv AS |
| Gentas Genel vs. Ege Endustri ve | Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Turkiye Garanti Bankasi | Gentas Genel vs. Turkish Airlines |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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