Correlation Between Gentas Genel and Turk Prysmian
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Turk Prysmian 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 Turk Prysmian 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 Turk Prysmian Kablo, you can compare the effects of market volatilities on Gentas Genel and Turk Prysmian 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 Turk Prysmian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Turk Prysmian.
Diversification Opportunities for Gentas Genel and Turk Prysmian
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gentas and Turk is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Turk Prysmian Kablo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Prysmian Kablo 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 Turk Prysmian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Prysmian Kablo has no effect on the direction of Gentas Genel i.e., Gentas Genel and Turk Prysmian go up and down completely randomly.
Pair Corralation between Gentas Genel and Turk Prysmian
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 3.02 times more return on investment than Turk Prysmian. However, Gentas Genel is 3.02 times more volatile than Turk Prysmian Kablo. It trades about 0.25 of its potential returns per unit of risk. Turk Prysmian Kablo is currently generating about 0.18 per unit of risk. If you would invest 944.00 in Gentas Genel Metal on October 27, 2024 and sell it today you would earn a total of 200.00 from holding Gentas Genel Metal or generate 21.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Gentas Genel Metal vs. Turk Prysmian Kablo
Performance |
Timeline |
Gentas Genel Metal |
Turk Prysmian Kablo |
Gentas Genel and Turk Prysmian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gentas Genel and Turk Prysmian
The main advantage of trading using opposite Gentas Genel and Turk Prysmian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Turk Prysmian 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 Turk Prysmian will offset losses from the drop in Turk Prysmian's long position.Gentas Genel vs. CEO Event Medya | Gentas Genel vs. Qnb Finansbank AS | Gentas Genel vs. Creditwest Faktoring AS | Gentas Genel vs. Borlease Otomotiv AS |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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