Correlation Between Gentas Genel and Ege Endustri
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Ege Endustri 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 Ege Endustri 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 Ege Endustri ve, you can compare the effects of market volatilities on Gentas Genel and Ege Endustri 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 Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Ege Endustri.
Diversification Opportunities for Gentas Genel and Ege Endustri
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gentas and Ege is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri 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 Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of Gentas Genel i.e., Gentas Genel and Ege Endustri go up and down completely randomly.
Pair Corralation between Gentas Genel and Ege Endustri
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.51 times more return on investment than Ege Endustri. However, Gentas Genel is 1.51 times more volatile than Ege Endustri ve. It trades about 0.29 of its potential returns per unit of risk. Ege Endustri ve is currently generating about -0.02 per unit of risk. If you would invest 1,010 in Gentas Genel Metal on December 30, 2024 and sell it today you would earn a total of 920.00 from holding Gentas Genel Metal or generate 91.09% 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. Ege Endustri ve
Performance |
Timeline |
Gentas Genel Metal |
Ege Endustri ve |
Gentas Genel and Ege Endustri Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gentas Genel and Ege Endustri
The main advantage of trading using opposite Gentas Genel and Ege Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Ege Endustri 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 Ege Endustri will offset losses from the drop in Ege Endustri's long position.Gentas Genel vs. Cuhadaroglu Metal Sanayi | Gentas Genel vs. Bms Birlesik Metal | Gentas Genel vs. Creditwest Faktoring AS | Gentas Genel vs. Politeknik Metal 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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