Correlation Between Gentas Genel and Euro Trend
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Euro Trend 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 Euro Trend 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 Euro Trend Yatirim, you can compare the effects of market volatilities on Gentas Genel and Euro Trend 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 Euro Trend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Euro Trend.
Diversification Opportunities for Gentas Genel and Euro Trend
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gentas and Euro is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Euro Trend Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Trend Yatirim 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 Euro Trend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Trend Yatirim has no effect on the direction of Gentas Genel i.e., Gentas Genel and Euro Trend go up and down completely randomly.
Pair Corralation between Gentas Genel and Euro Trend
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.89 times more return on investment than Euro Trend. However, Gentas Genel Metal is 1.12 times less risky than Euro Trend. It trades about 0.08 of its potential returns per unit of risk. Euro Trend Yatirim is currently generating about -0.04 per unit of risk. If you would invest 878.00 in Gentas Genel Metal on October 13, 2024 and sell it today you would earn a total of 239.00 from holding Gentas Genel Metal or generate 27.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gentas Genel Metal vs. Euro Trend Yatirim
Performance |
Timeline |
Gentas Genel Metal |
Euro Trend Yatirim |
Gentas Genel and Euro Trend Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gentas Genel and Euro Trend
The main advantage of trading using opposite Gentas Genel and Euro Trend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Euro Trend 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 Euro Trend will offset losses from the drop in Euro Trend's long position.Gentas Genel vs. Silverline Endustri ve | Gentas Genel vs. Turkish Airlines | Gentas Genel vs. MEGA METAL | Gentas Genel vs. Datagate Bilgisayar Malzemeleri |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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