Correlation Between Koza Anadolu and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu 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 Koza Anadolu and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koza Anadolu Metal and Gentas Genel Metal, you can compare the effects of market volatilities on Koza Anadolu 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 Koza Anadolu with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Gentas Genel.
Diversification Opportunities for Koza Anadolu and Gentas Genel
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koza and Gentas is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal 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 Koza Anadolu 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 Koza Anadolu Metal 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 Koza Anadolu i.e., Koza Anadolu and Gentas Genel go up and down completely randomly.
Pair Corralation between Koza Anadolu and Gentas Genel
Assuming the 90 days trading horizon Koza Anadolu is expected to generate 1.09 times less return on investment than Gentas Genel. In addition to that, Koza Anadolu is 1.05 times more volatile than Gentas Genel Metal. It trades about 0.04 of its total potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.05 per unit of volatility. If you would invest 496.00 in Gentas Genel Metal on August 28, 2024 and sell it today you would earn a total of 349.00 from holding Gentas Genel Metal or generate 70.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Gentas Genel Metal
Performance |
| Timeline |
| Koza Anadolu Metal |
| Gentas Genel Metal |
Koza Anadolu and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Gentas Genel
The main advantage of trading using opposite Koza Anadolu and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu 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.| Koza Anadolu vs. Qnb Finansbank AS | Koza Anadolu vs. QNB Finans Finansal | Koza Anadolu vs. Turkiye Kalkinma Bankasi | Koza Anadolu vs. Kocaer Celik Sanayi |
| Gentas Genel vs. QNB Finans Finansal | Gentas Genel vs. Pamel Yenilenebilir Elektrik | Gentas Genel vs. Brisa Bridgestone Sabanci | Gentas Genel vs. Dogus Gayrimenkul Yatirim |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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