Correlation Between Metemtur Yatrm and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Metemtur Yatrm 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 Metemtur Yatrm and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metemtur Yatrm Enerji and Gentas Genel Metal, you can compare the effects of market volatilities on Metemtur Yatrm 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 Metemtur Yatrm with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metemtur Yatrm and Gentas Genel.
Diversification Opportunities for Metemtur Yatrm and Gentas Genel
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Metemtur and Gentas is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Metemtur Yatrm Enerji 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 Metemtur Yatrm 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 Metemtur Yatrm Enerji 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 Metemtur Yatrm i.e., Metemtur Yatrm and Gentas Genel go up and down completely randomly.
Pair Corralation between Metemtur Yatrm and Gentas Genel
Assuming the 90 days trading horizon Metemtur Yatrm is expected to generate 3.9 times less return on investment than Gentas Genel. But when comparing it to its historical volatility, Metemtur Yatrm Enerji is 2.53 times less risky than Gentas Genel. It trades about 0.13 of its potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 959.00 in Gentas Genel Metal on October 24, 2024 and sell it today you would earn a total of 147.00 from holding Gentas Genel Metal or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metemtur Yatrm Enerji vs. Gentas Genel Metal
Performance |
| Timeline |
| Metemtur Yatrm Enerji |
| Gentas Genel Metal |
Metemtur Yatrm and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metemtur Yatrm and Gentas Genel
The main advantage of trading using opposite Metemtur Yatrm and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metemtur Yatrm 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.| Metemtur Yatrm vs. Akbank TAS | Metemtur Yatrm vs. KOC METALURJI | Metemtur Yatrm vs. Koza Anadolu Metal | Metemtur Yatrm vs. Bms Birlesik Metal |
| Gentas Genel vs. MEGA METAL | Gentas Genel vs. Creditwest Faktoring AS | Gentas Genel vs. Borlease Otomotiv AS | Gentas Genel vs. Galatasaray Sportif Sinai |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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