Correlation Between Gentas Genel and Aksu Enerji

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

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

Diversification Opportunities for Gentas Genel and Aksu Enerji

0.36

Correlation Coefficient

Gentas Genel  Aksu Enerji

Weak diversification

The 3 months correlation between Gentas and Aksu is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Aksu Enerji ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksu Enerji ve and Gentas Genel 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 Gentas Genel Metal are associated (or correlated) with Aksu Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksu Enerji ve has no effect on the direction of Gentas Genel i.e., Gentas Genel and Aksu Enerji go up and down completely randomly.

Pair Corralation between Gentas Genel and Aksu Enerji

Assuming the 90 days trading horizon Gentas Genel is expected to generate 1.01 times less return on investment than Aksu Enerji. In addition to that, Gentas Genel is 1.27 times more volatile than Aksu Enerji ve. It trades about 0.2 of its total potential returns per unit of risk. Aksu Enerji ve is currently generating about 0.25 per unit of volatility. If you would invest  1,117  in Aksu Enerji ve on December 21, 2024 and sell it today you would earn a total of  583.00  from holding Aksu Enerji ve or generate 52.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Gentas Genel Metal  vs.  Aksu Enerji ve

Gentas Genel Metal

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gentas Genel Metal are ranked lower than 15 (%) 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.

Aksu Enerji ve

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Aksu Enerji ve are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Aksu Enerji demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gentas Genel and Aksu Enerji

The main advantage of trading using opposite Gentas Genel and Aksu Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Aksu Enerji 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 Aksu Enerji will offset losses from the drop in Aksu Enerji's long position.

The idea behind Gentas Genel Metal and Aksu Enerji ve 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.