Correlation Between Netas Telekomunikasyon and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Netas Telekomunikasyon 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 Netas Telekomunikasyon and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netas Telekomunikasyon AS and Gentas Genel Metal, you can compare the effects of market volatilities on Netas Telekomunikasyon 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 Netas Telekomunikasyon with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netas Telekomunikasyon and Gentas Genel.
Diversification Opportunities for Netas Telekomunikasyon and Gentas Genel
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Netas and Gentas is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Netas Telekomunikasyon 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 Netas Telekomunikasyon 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 Netas Telekomunikasyon 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 Netas Telekomunikasyon i.e., Netas Telekomunikasyon and Gentas Genel go up and down completely randomly.
Pair Corralation between Netas Telekomunikasyon and Gentas Genel
Assuming the 90 days trading horizon Netas Telekomunikasyon AS is expected to generate 1.52 times more return on investment than Gentas Genel. However, Netas Telekomunikasyon is 1.52 times more volatile than Gentas Genel Metal. It trades about 0.08 of its potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.01 per unit of risk. If you would invest 4,050 in Netas Telekomunikasyon AS on September 4, 2024 and sell it today you would earn a total of 3,155 from holding Netas Telekomunikasyon AS or generate 77.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netas Telekomunikasyon AS vs. Gentas Genel Metal
Performance |
| Timeline |
| Netas Telekomunikasyon |
| Gentas Genel Metal |
Netas Telekomunikasyon and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netas Telekomunikasyon and Gentas Genel
The main advantage of trading using opposite Netas Telekomunikasyon and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netas Telekomunikasyon 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.| Netas Telekomunikasyon vs. Gentas Genel Metal | Netas Telekomunikasyon vs. E Data Teknoloji Pazarlama | Netas Telekomunikasyon vs. MEGA METAL | Netas Telekomunikasyon vs. Bms Birlesik Metal |
| Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Arcelik AS | Gentas Genel vs. Turkiye Garanti Bankasi | Gentas Genel vs. Akbank TAS |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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