Correlation Between Sodas Sodyum and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Sodas Sodyum 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 Sodas Sodyum and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sodas Sodyum Sanayi and Gentas Genel Metal, you can compare the effects of market volatilities on Sodas Sodyum 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 Sodas Sodyum with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sodas Sodyum and Gentas Genel.
Diversification Opportunities for Sodas Sodyum and Gentas Genel
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sodas and Gentas is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sodas Sodyum Sanayi 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 Sodas Sodyum 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 Sodas Sodyum Sanayi 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 Sodas Sodyum i.e., Sodas Sodyum and Gentas Genel go up and down completely randomly.
Pair Corralation between Sodas Sodyum and Gentas Genel
Assuming the 90 days trading horizon Sodas Sodyum Sanayi is expected to under-perform the Gentas Genel. But the stock apears to be less risky and, when comparing its historical volatility, Sodas Sodyum Sanayi is 1.59 times less risky than Gentas Genel. The stock trades about -0.25 of its potential returns per unit of risk. The Gentas Genel Metal is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,173 in Gentas Genel Metal on November 7, 2024 and sell it today you would lose (73.00) from holding Gentas Genel Metal or give up 6.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sodas Sodyum Sanayi vs. Gentas Genel Metal
Performance |
| Timeline |
| Sodas Sodyum Sanayi |
| Gentas Genel Metal |
Sodas Sodyum and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sodas Sodyum and Gentas Genel
The main advantage of trading using opposite Sodas Sodyum and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sodas Sodyum 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.| Sodas Sodyum vs. Bms Birlesik Metal | Sodas Sodyum vs. Koza Anadolu Metal | Sodas Sodyum vs. Qnb Finansbank AS | Sodas Sodyum vs. ICBC Turkey Bank |
| Gentas Genel vs. Sodas Sodyum Sanayi | Gentas Genel vs. CEO Event Medya | Gentas Genel vs. Creditwest Faktoring AS | Gentas Genel vs. Bms Birlesik 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |