Correlation Between Gentas Genel and Bursa Cimento
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Bursa Cimento 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 Bursa Cimento 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 Bursa Cimento Fabrikasi, you can compare the effects of market volatilities on Gentas Genel and Bursa Cimento 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 Bursa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Bursa Cimento.
Diversification Opportunities for Gentas Genel and Bursa Cimento
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gentas and Bursa is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Bursa Cimento Fabrikasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bursa Cimento Fabrikasi 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 Bursa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bursa Cimento Fabrikasi has no effect on the direction of Gentas Genel i.e., Gentas Genel and Bursa Cimento go up and down completely randomly.
Pair Corralation between Gentas Genel and Bursa Cimento
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.58 times more return on investment than Bursa Cimento. However, Gentas Genel Metal is 1.72 times less risky than Bursa Cimento. It trades about 0.36 of its potential returns per unit of risk. Bursa Cimento Fabrikasi is currently generating about 0.19 per unit of risk. If you would invest 850.00 in Gentas Genel Metal on September 26, 2024 and sell it today you would earn a total of 115.00 from holding Gentas Genel Metal or generate 13.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Gentas Genel Metal vs. Bursa Cimento Fabrikasi
Performance |
Timeline |
Gentas Genel Metal |
Bursa Cimento Fabrikasi |
Gentas Genel and Bursa Cimento Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gentas Genel and Bursa Cimento
The main advantage of trading using opposite Gentas Genel and Bursa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Bursa Cimento 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 Bursa Cimento will offset losses from the drop in Bursa Cimento's long position.Gentas Genel vs. Eregli Demir ve | Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Turkish Airlines | Gentas Genel vs. Ford Otomotiv 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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