Correlation Between Tek Art and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Tek Art 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 Tek Art and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tek Art Insaat Ticaret and Gentas Genel Metal, you can compare the effects of market volatilities on Tek Art 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 Tek Art with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tek Art and Gentas Genel.
Diversification Opportunities for Tek Art and Gentas Genel
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tek and Gentas is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Tek Art Insaat Ticaret 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 Tek Art 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 Tek Art Insaat Ticaret 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 Tek Art i.e., Tek Art and Gentas Genel go up and down completely randomly.
Pair Corralation between Tek Art and Gentas Genel
Assuming the 90 days trading horizon Tek Art Insaat Ticaret is expected to generate 1.51 times more return on investment than Gentas Genel. However, Tek Art is 1.51 times more volatile than Gentas Genel Metal. It trades about 0.03 of its potential returns per unit of risk. Gentas Genel Metal is currently generating about -0.01 per unit of risk. If you would invest 388.00 in Tek Art Insaat Ticaret on August 24, 2024 and sell it today you would earn a total of 51.00 from holding Tek Art Insaat Ticaret or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tek Art Insaat Ticaret vs. Gentas Genel Metal
Performance |
| Timeline |
| Tek Art Insaat |
| Gentas Genel Metal |
Tek Art and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tek Art and Gentas Genel
The main advantage of trading using opposite Tek Art and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tek Art 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.| Tek Art vs. Gentas Genel Metal | Tek Art vs. Akbank TAS | Tek Art vs. ICBC Turkey Bank | Tek Art vs. Bms Birlesik Metal |
| Gentas Genel vs. MEGA METAL | Gentas Genel vs. Cuhadaroglu Metal Sanayi | Gentas Genel vs. Politeknik Metal Sanayi |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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