Correlation Between Royal Hali and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Royal Hali 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 Royal Hali and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Royal Hali Iplik and Gentas Genel Metal, you can compare the effects of market volatilities on Royal Hali 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 Royal Hali with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Royal Hali and Gentas Genel.
Diversification Opportunities for Royal Hali and Gentas Genel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Royal and Gentas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Royal Hali Iplik 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 Royal Hali 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 Royal Hali Iplik 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 Royal Hali i.e., Royal Hali and Gentas Genel go up and down completely randomly.
Pair Corralation between Royal Hali and Gentas Genel
Assuming the 90 days trading horizon Royal Hali Iplik is expected to under-perform the Gentas Genel. But the stock apears to be less risky and, when comparing its historical volatility, Royal Hali Iplik is 10.09 times less risky than Gentas Genel. The stock trades about -0.04 of its potential returns per unit of risk. The Gentas Genel Metal is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 515.00 in Gentas Genel Metal on September 2, 2024 and sell it today you would earn a total of 360.00 from holding Gentas Genel Metal or generate 69.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Royal Hali Iplik vs. Gentas Genel Metal
Performance |
| Timeline |
| Royal Hali Iplik |
| Gentas Genel Metal |
Royal Hali and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Royal Hali and Gentas Genel
The main advantage of trading using opposite Royal Hali and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Royal Hali 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.| Royal Hali vs. Turkiye Kalkinma Bankasi | Royal Hali vs. Qnb Finansbank AS | Royal Hali vs. ICBC Turkey Bank | Royal Hali vs. Galatasaray Sportif Sinai |
| Gentas Genel vs. Cuhadaroglu Metal Sanayi | Gentas Genel vs. Bms Birlesik Metal | Gentas Genel vs. Creditwest Faktoring AS | Gentas Genel vs. Koza Anadolu Metal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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