Correlation Between Ihlas Gazetecilik and Gentas Genel

Can any of the company-specific risk be diversified away by investing in both Ihlas Gazetecilik and Gentas Genel 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 Ihlas Gazetecilik and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ihlas Gazetecilik AS and Gentas Genel Metal, you can compare the effects of market volatilities on Ihlas Gazetecilik and Gentas Genel 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 Ihlas Gazetecilik with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihlas Gazetecilik and Gentas Genel.

Diversification Opportunities for Ihlas Gazetecilik and Gentas Genel

-0.32

Correlation Coefficient

Ihlas Gazetecilik  Gentas Genel

Very good diversification

The 3 months correlation between Ihlas and Gentas is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ihlas Gazetecilik AS and Gentas Genel Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentas Genel Metal and Ihlas Gazetecilik 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 Ihlas Gazetecilik AS are associated (or correlated) with Gentas Genel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentas Genel Metal has no effect on the direction of Ihlas Gazetecilik i.e., Ihlas Gazetecilik and Gentas Genel go up and down completely randomly.

Pair Corralation between Ihlas Gazetecilik and Gentas Genel

Assuming the 90 days trading horizon Ihlas Gazetecilik AS is expected to under-perform the Gentas Genel. In addition to that, Ihlas Gazetecilik is 1.02 times more volatile than Gentas Genel Metal. It trades about -0.03 of its total potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.29 per unit of volatility. 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

Ihlas Gazetecilik AS  vs.  Gentas Genel Metal

Ihlas Gazetecilik

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ihlas Gazetecilik AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Gentas Genel Metal

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gentas Genel Metal are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Gentas Genel demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ihlas Gazetecilik and Gentas Genel

The main advantage of trading using opposite Ihlas Gazetecilik and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihlas Gazetecilik position performs unexpectedly, Gentas Genel 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 Gentas Genel will offset losses from the drop in Gentas Genel's long position.

The idea behind Ihlas Gazetecilik AS and Gentas Genel Metal pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.