Correlation Between Trend Gayrimenkul and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Trend Gayrimenkul 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 Trend Gayrimenkul and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trend Gayrimenkul Yatirim and Gentas Genel Metal, you can compare the effects of market volatilities on Trend Gayrimenkul 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 Trend Gayrimenkul with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trend Gayrimenkul and Gentas Genel.
Diversification Opportunities for Trend Gayrimenkul and Gentas Genel
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Trend and Gentas is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Trend Gayrimenkul Yatirim 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 Trend Gayrimenkul 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 Trend Gayrimenkul Yatirim 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 Trend Gayrimenkul i.e., Trend Gayrimenkul and Gentas Genel go up and down completely randomly.
Pair Corralation between Trend Gayrimenkul and Gentas Genel
Assuming the 90 days trading horizon Trend Gayrimenkul Yatirim is expected to under-perform the Gentas Genel. In addition to that, Trend Gayrimenkul is 1.35 times more volatile than Gentas Genel Metal. It trades about -0.11 of its total potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.29 per unit of volatility. If you would invest 770.00 in Gentas Genel Metal on September 4, 2024 and sell it today you would earn a total of 112.00 from holding Gentas Genel Metal or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trend Gayrimenkul Yatirim vs. Gentas Genel Metal
Performance |
| Timeline |
| Trend Gayrimenkul Yatirim |
| Gentas Genel Metal |
Trend Gayrimenkul and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trend Gayrimenkul and Gentas Genel
The main advantage of trading using opposite Trend Gayrimenkul and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trend Gayrimenkul 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.| Trend Gayrimenkul vs. Gentas Genel Metal | Trend Gayrimenkul vs. Koza Anadolu Metal | Trend Gayrimenkul vs. Politeknik Metal Sanayi | Trend Gayrimenkul vs. Cuhadaroglu Metal Sanayi |
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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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