Correlation Between Gentas Genel and Nuh Cimento
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Nuh 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 Nuh 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 Nuh Cimento Sanayi, you can compare the effects of market volatilities on Gentas Genel and Nuh 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 Nuh Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Nuh Cimento.
Diversification Opportunities for Gentas Genel and Nuh Cimento
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gentas and Nuh is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Nuh Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuh Cimento Sanayi 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 Nuh Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuh Cimento Sanayi has no effect on the direction of Gentas Genel i.e., Gentas Genel and Nuh Cimento go up and down completely randomly.
Pair Corralation between Gentas Genel and Nuh Cimento
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.27 times more return on investment than Nuh Cimento. However, Gentas Genel is 1.27 times more volatile than Nuh Cimento Sanayi. It trades about 0.18 of its potential returns per unit of risk. Nuh Cimento Sanayi is currently generating about -0.13 per unit of risk. If you would invest 888.00 in Gentas Genel Metal on December 4, 2024 and sell it today you would earn a total of 333.00 from holding Gentas Genel Metal or generate 37.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Gentas Genel Metal vs. Nuh Cimento Sanayi
Performance |
Timeline |
Gentas Genel Metal |
Nuh Cimento Sanayi |
Gentas Genel and Nuh Cimento Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gentas Genel and Nuh Cimento
The main advantage of trading using opposite Gentas Genel and Nuh Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Nuh 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 Nuh Cimento will offset losses from the drop in Nuh Cimento's long position.Gentas Genel vs. Bms Birlesik Metal | Gentas Genel vs. Koza Anadolu Metal | Gentas Genel vs. Cuhadaroglu Metal Sanayi | Gentas Genel vs. E Data Teknoloji Pazarlama |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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