Correlation Between Yaprak Sut and Gentas Genel

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

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

Diversification Opportunities for Yaprak Sut and Gentas Genel

0.94

Correlation Coefficient

Yaprak Sut  Gentas Genel

Almost no diversification

The 3 months correlation between Yaprak and Gentas is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Yaprak Sut ve 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 Yaprak Sut 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 Yaprak Sut ve 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 Yaprak Sut i.e., Yaprak Sut and Gentas Genel go up and down completely randomly.

Pair Corralation between Yaprak Sut and Gentas Genel

Assuming the 90 days trading horizon Yaprak Sut ve is expected to generate 1.46 times more return on investment than Gentas Genel. However, Yaprak Sut is 1.46 times more volatile than Gentas Genel Metal. It trades about 0.35 of its potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.27 per unit of risk. If you would invest  38,550  in Yaprak Sut ve on October 22, 2024 and sell it today you would earn a total of  47,450  from holding Yaprak Sut ve or generate 123.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Yaprak Sut ve  vs.  Gentas Genel Metal

Yaprak Sut ve

Risk-Adjusted Performance

27 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Yaprak Sut ve are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yaprak Sut demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Gentas Genel Metal

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gentas Genel Metal are ranked lower than 21 (%) 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 Yaprak Sut and Gentas Genel

The main advantage of trading using opposite Yaprak Sut and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yaprak Sut 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 Yaprak Sut ve 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.