Correlation Between Adese Gayrimenkul and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Adese Gayrimenkul 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 Adese Gayrimenkul and Gentas Genel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adese Gayrimenkul Yatirim and Gentas Genel Metal, you can compare the effects of market volatilities on Adese Gayrimenkul 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 Adese Gayrimenkul with a short position of Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adese Gayrimenkul and Gentas Genel.
Diversification Opportunities for Adese Gayrimenkul and Gentas Genel
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Adese and Gentas is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Adese Gayrimenkul Yatirim 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 Adese Gayrimenkul 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 Adese Gayrimenkul Yatirim 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 Adese Gayrimenkul i.e., Adese Gayrimenkul and Gentas Genel go up and down completely randomly.
Pair Corralation between Adese Gayrimenkul and Gentas Genel
Assuming the 90 days trading horizon Adese Gayrimenkul is expected to generate 1.6 times less return on investment than Gentas Genel. In addition to that, Adese Gayrimenkul is 1.39 times more volatile than Gentas Genel Metal. It trades about 0.08 of its total potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.17 per unit of volatility. If you would invest 780.00 in Gentas Genel Metal on September 25, 2024 and sell it today you would earn a total of 179.00 from holding Gentas Genel Metal or generate 22.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.44% |
Values | Daily Returns |
Adese Gayrimenkul Yatirim vs. Gentas Genel Metal
Performance |
Timeline |
Adese Gayrimenkul Yatirim |
Gentas Genel Metal |
Adese Gayrimenkul and Gentas Genel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Adese Gayrimenkul and Gentas Genel
The main advantage of trading using opposite Adese Gayrimenkul and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adese Gayrimenkul 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.Adese Gayrimenkul vs. Trabzon Liman Isletmeciligi | Adese Gayrimenkul vs. Bayrak EBT Taban | Adese Gayrimenkul vs. Alkim Kagit Sanayi | Adese Gayrimenkul vs. Federal Mogul Izmit |
Gentas Genel vs. Eregli Demir ve | Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Turkish Airlines | Gentas Genel vs. Ford Otomotiv Sanayi |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |