Correlation Between Nasmed Ozel and Gentas Genel

Can any of the company-specific risk be diversified away by investing in both Nasmed Ozel 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 Nasmed Ozel and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nasmed Ozel Saglik and Gentas Genel Metal, you can compare the effects of market volatilities on Nasmed Ozel 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 Nasmed Ozel with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasmed Ozel and Gentas Genel.

Diversification Opportunities for Nasmed Ozel and Gentas Genel

0.0

Correlation Coefficient

Nasmed Ozel  Gentas Genel

Pay attention - limited upside

The 3 months correlation between Nasmed and Gentas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nasmed Ozel Saglik 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 Nasmed Ozel 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 Nasmed Ozel Saglik 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 Nasmed Ozel i.e., Nasmed Ozel and Gentas Genel go up and down completely randomly.

Pair Corralation between Nasmed Ozel and Gentas Genel

If you would invest  714.00  in Gentas Genel Metal on October 9, 2024 and sell it today you would earn a total of  459.00  from holding Gentas Genel Metal or generate 64.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Nasmed Ozel Saglik  vs.  Gentas Genel Metal

Nasmed Ozel Saglik

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Nasmed Ozel Saglik has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Nasmed Ozel is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Gentas Genel Metal

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Gentas Genel Metal are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Gentas Genel demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nasmed Ozel and Gentas Genel

The main advantage of trading using opposite Nasmed Ozel and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasmed Ozel 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 Nasmed Ozel Saglik 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.

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.