Correlation Between Is Girisim and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Is 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 Is 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 Is Girisim Sermayesi and Gentas Genel Metal, you can compare the effects of market volatilities on Is 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 Is Girisim with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Girisim and Gentas Genel.
Diversification Opportunities for Is Girisim and Gentas Genel
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ISGSY and Gentas is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Is 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 Is 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 Is 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 Is Girisim i.e., Is Girisim and Gentas Genel go up and down completely randomly.
Pair Corralation between Is Girisim and Gentas Genel
Assuming the 90 days trading horizon Is Girisim Sermayesi is expected to generate 0.94 times more return on investment than Gentas Genel. However, Is Girisim Sermayesi is 1.07 times less risky than Gentas Genel. It trades about 0.22 of its potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.19 per unit of risk. If you would invest 3,782 in Is Girisim Sermayesi on October 29, 2024 and sell it today you would earn a total of 556.00 from holding Is Girisim Sermayesi or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Is Girisim Sermayesi vs. Gentas Genel Metal
Performance |
| Timeline |
| Is Girisim Sermayesi |
| Gentas Genel Metal |
Is Girisim and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Is Girisim and Gentas Genel
The main advantage of trading using opposite Is Girisim and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Is 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.| Is Girisim vs. Gentas Genel Metal | Is Girisim vs. KOC METALURJI | Is Girisim vs. Borlease Otomotiv AS | Is Girisim vs. Koza Anadolu Metal |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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