Correlation Between Koc Holding and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Koc Holding 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 Koc Holding and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koc Holding AS and Gentas Genel Metal, you can compare the effects of market volatilities on Koc Holding 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 Koc Holding with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Gentas Genel.
Diversification Opportunities for Koc Holding and Gentas Genel
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koc and Gentas is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS 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 Koc Holding 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 Koc Holding AS 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 Koc Holding i.e., Koc Holding and Gentas Genel go up and down completely randomly.
Pair Corralation between Koc Holding and Gentas Genel
Assuming the 90 days trading horizon Koc Holding is expected to generate 2.78 times less return on investment than Gentas Genel. But when comparing it to its historical volatility, Koc Holding AS is 1.1 times less risky than Gentas Genel. It trades about 0.03 of its potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 786.00 in Gentas Genel Metal on September 3, 2024 and sell it today you would earn a total of 89.00 from holding Gentas Genel Metal or generate 11.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holding AS vs. Gentas Genel Metal
Performance |
| Timeline |
| Koc Holding AS |
| Gentas Genel Metal |
Koc Holding and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Gentas Genel
The main advantage of trading using opposite Koc Holding and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding 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.| Koc Holding vs. Haci Omer Sabanci | Koc Holding vs. Turkiye Sise ve | Koc Holding vs. Turkiye Petrol Rafinerileri | Koc Holding vs. Turkiye Garanti Bankasi |
| Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Koc Holding AS | Gentas Genel vs. Arcelik AS | Gentas Genel vs. Turkiye Garanti Bankasi |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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