Correlation Between Gentas Genel and Ihlas Holding
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Ihlas Holding 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 Ihlas Holding 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 Ihlas Holding AS, you can compare the effects of market volatilities on Gentas Genel and Ihlas Holding 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 Ihlas Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Ihlas Holding.
Diversification Opportunities for Gentas Genel and Ihlas Holding
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gentas and Ihlas is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Ihlas Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihlas Holding AS 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 Ihlas Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihlas Holding AS has no effect on the direction of Gentas Genel i.e., Gentas Genel and Ihlas Holding go up and down completely randomly.
Pair Corralation between Gentas Genel and Ihlas Holding
Assuming the 90 days trading horizon Gentas Genel is expected to generate 7.52 times less return on investment than Ihlas Holding. But when comparing it to its historical volatility, Gentas Genel Metal is 2.89 times less risky than Ihlas Holding. It trades about 0.12 of its potential returns per unit of risk. Ihlas Holding AS is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 112.00 in Ihlas Holding AS on September 23, 2024 and sell it today you would earn a total of 230.00 from holding Ihlas Holding AS or generate 205.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Gentas Genel Metal vs. Ihlas Holding AS
Performance |
Timeline |
Gentas Genel Metal |
Ihlas Holding AS |
Gentas Genel and Ihlas Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gentas Genel and Ihlas Holding
The main advantage of trading using opposite Gentas Genel and Ihlas Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Ihlas Holding 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 Ihlas Holding will offset losses from the drop in Ihlas Holding's long position.Gentas Genel vs. Bms Birlesik Metal | Gentas Genel vs. Koza Anadolu Metal | Gentas Genel vs. Politeknik Metal Sanayi | Gentas Genel vs. Trabzonspor Sportif Yatirim |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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