Correlation Between Gentas Genel and Anatolia Tani

Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Anatolia Tani 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 Anatolia Tani 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 Anatolia Tani ve, you can compare the effects of market volatilities on Gentas Genel and Anatolia Tani 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 Anatolia Tani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Anatolia Tani.

Diversification Opportunities for Gentas Genel and Anatolia Tani

-0.31

Correlation Coefficient

Gentas Genel  Anatolia Tani

Very good diversification

The 3 months correlation between Gentas and Anatolia is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Anatolia Tani ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anatolia Tani 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 Anatolia Tani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anatolia Tani ve has no effect on the direction of Gentas Genel i.e., Gentas Genel and Anatolia Tani go up and down completely randomly.

Pair Corralation between Gentas Genel and Anatolia Tani

Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.06 times more return on investment than Anatolia Tani. However, Gentas Genel is 1.06 times more volatile than Anatolia Tani ve. It trades about 0.25 of its potential returns per unit of risk. Anatolia Tani ve is currently generating about -0.03 per unit of risk. If you would invest  944.00  in Gentas Genel Metal on December 26, 2024 and sell it today you would earn a total of  666.00  from holding Gentas Genel Metal or generate 70.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gentas Genel Metal  vs.  Anatolia Tani 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 19 (%) 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.

Anatolia Tani ve

Risk-Adjusted Performance

Very Weak

Over the last 90 days Anatolia Tani ve has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Gentas Genel and Anatolia Tani

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

The idea behind Gentas Genel Metal and Anatolia Tani 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.