Correlation Between Suwen Tekstil and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Suwen Tekstil 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 Suwen Tekstil and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suwen Tekstil Sanayi and Gentas Genel Metal, you can compare the effects of market volatilities on Suwen Tekstil 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 Suwen Tekstil with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suwen Tekstil and Gentas Genel.
Diversification Opportunities for Suwen Tekstil and Gentas Genel
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suwen and Gentas is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Suwen Tekstil 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 Suwen Tekstil 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 Suwen Tekstil 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 Suwen Tekstil i.e., Suwen Tekstil and Gentas Genel go up and down completely randomly.
Pair Corralation between Suwen Tekstil and Gentas Genel
Assuming the 90 days trading horizon Suwen Tekstil Sanayi is expected to under-perform the Gentas Genel. But the stock apears to be less risky and, when comparing its historical volatility, Suwen Tekstil Sanayi is 1.15 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 0.23 of returns per unit of risk over similar time horizon. If you would invest 786.00 in Gentas Genel Metal on September 2, 2024 and sell it today you would earn a total of 89.00 from holding Gentas Genel Metal or generate 11.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suwen Tekstil Sanayi vs. Gentas Genel Metal
Performance |
| Timeline |
| Suwen Tekstil Sanayi |
| Gentas Genel Metal |
Suwen Tekstil and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suwen Tekstil and Gentas Genel
The main advantage of trading using opposite Suwen Tekstil and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suwen Tekstil 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.| Suwen Tekstil vs. Rodrigo Tekstil Sanayi | Suwen Tekstil vs. Derluks Yatirim Holding | Suwen Tekstil vs. Brisa Bridgestone Sabanci | Suwen Tekstil vs. Dogus Gayrimenkul Yatirim |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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