Correlation Between Turkiye Sise and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Turkiye Sise 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 Turkiye Sise and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Sise ve and Gentas Genel Metal, you can compare the effects of market volatilities on Turkiye Sise 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 Turkiye Sise with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sise and Gentas Genel.
Diversification Opportunities for Turkiye Sise and Gentas Genel
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and Gentas is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve 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 Turkiye Sise 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 Turkiye Sise ve 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 Turkiye Sise i.e., Turkiye Sise and Gentas Genel go up and down completely randomly.
Pair Corralation between Turkiye Sise and Gentas Genel
Assuming the 90 days trading horizon Turkiye Sise ve is expected to under-perform the Gentas Genel. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Sise ve is 1.49 times less risky than Gentas Genel. The stock trades about -0.03 of its potential returns per unit of risk. The Gentas Genel Metal is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 721.00 in Gentas Genel Metal on September 1, 2024 and sell it today you would earn a total of 154.00 from holding Gentas Genel Metal or generate 21.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Sise ve vs. Gentas Genel Metal
Performance |
| Timeline |
| Turkiye Sise ve |
| Gentas Genel Metal |
Turkiye Sise and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Sise and Gentas Genel
The main advantage of trading using opposite Turkiye Sise and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sise 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.The idea behind Turkiye Sise ve and Gentas Genel Metal pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Gentas Genel vs. E Data Teknoloji Pazarlama | Gentas Genel vs. Koza Anadolu Metal | Gentas Genel vs. Turkish Airlines | Gentas Genel vs. MEGA 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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