Correlation Between Gentas Genel and Sinpas Gayrimenkul

Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Sinpas Gayrimenkul 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 Sinpas Gayrimenkul 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 Sinpas Gayrimenkul Yatirim, you can compare the effects of market volatilities on Gentas Genel and Sinpas Gayrimenkul 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 Sinpas Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Sinpas Gayrimenkul.

Diversification Opportunities for Gentas Genel and Sinpas Gayrimenkul

0.58

Correlation Coefficient

Gentas Genel  Sinpas Gayrimenkul

Very weak diversification

The 3 months correlation between Gentas and Sinpas is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Sinpas Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinpas Gayrimenkul 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 Sinpas Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinpas Gayrimenkul has no effect on the direction of Gentas Genel i.e., Gentas Genel and Sinpas Gayrimenkul go up and down completely randomly.

Pair Corralation between Gentas Genel and Sinpas Gayrimenkul

Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.87 times more return on investment than Sinpas Gayrimenkul. However, Gentas Genel Metal is 1.15 times less risky than Sinpas Gayrimenkul. It trades about 0.12 of its potential returns per unit of risk. Sinpas Gayrimenkul Yatirim is currently generating about 0.04 per unit of risk. If you would invest  811.00  in Gentas Genel Metal on September 22, 2024 and sell it today you would earn a total of  132.00  from holding Gentas Genel Metal or generate 16.28% return on investment over 90 days.

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

Gentas Genel Metal  vs.  Sinpas Gayrimenkul Yatirim

Gentas Genel Metal

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gentas Genel Metal are ranked lower than 9 (%) 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.

Sinpas Gayrimenkul

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sinpas Gayrimenkul Yatirim are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Sinpas Gayrimenkul is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Gentas Genel and Sinpas Gayrimenkul

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

The idea behind Gentas Genel Metal and Sinpas Gayrimenkul Yatirim 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.