Correlation Between Gentas Genel and Dogan Sirketler
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Dogan Sirketler 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 Dogan Sirketler 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 Dogan Sirketler Grubu, you can compare the effects of market volatilities on Gentas Genel and Dogan Sirketler 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 Dogan Sirketler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Dogan Sirketler.
Diversification Opportunities for Gentas Genel and Dogan Sirketler
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gentas and Dogan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Dogan Sirketler Grubu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogan Sirketler Grubu 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 Dogan Sirketler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogan Sirketler Grubu has no effect on the direction of Gentas Genel i.e., Gentas Genel and Dogan Sirketler go up and down completely randomly.
Pair Corralation between Gentas Genel and Dogan Sirketler
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.16 times more return on investment than Dogan Sirketler. However, Gentas Genel is 1.16 times more volatile than Dogan Sirketler Grubu. It trades about 0.3 of its potential returns per unit of risk. Dogan Sirketler Grubu is currently generating about 0.14 per unit of risk. If you would invest 850.00 in Gentas Genel Metal on September 24, 2024 and sell it today you would earn a total of 93.00 from holding Gentas Genel Metal or generate 10.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Gentas Genel Metal vs. Dogan Sirketler Grubu
Performance |
Timeline |
Gentas Genel Metal |
Dogan Sirketler Grubu |
Gentas Genel and Dogan Sirketler Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gentas Genel and Dogan Sirketler
The main advantage of trading using opposite Gentas Genel and Dogan Sirketler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Dogan Sirketler 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 Dogan Sirketler will offset losses from the drop in Dogan Sirketler'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 |
Dogan Sirketler vs. Haci Omer Sabanci | Dogan Sirketler vs. Koc Holding AS | Dogan Sirketler vs. Kardemir Karabuk Demir | Dogan Sirketler vs. Petkim Petrokimya Holding |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Transaction History View history of all your transactions and understand their impact on performance | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |