Correlation Between Gentas Genel and Zorlu Enerji
Can any of the company-specific risk be diversified away by investing in both Gentas Genel and Zorlu Enerji 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 Zorlu Enerji 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 Zorlu Enerji Elektrik, you can compare the effects of market volatilities on Gentas Genel and Zorlu Enerji 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 Zorlu Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Zorlu Enerji.
Diversification Opportunities for Gentas Genel and Zorlu Enerji
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gentas and Zorlu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal and Zorlu Enerji Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zorlu Enerji Elektrik 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 Zorlu Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zorlu Enerji Elektrik has no effect on the direction of Gentas Genel i.e., Gentas Genel and Zorlu Enerji go up and down completely randomly.
Pair Corralation between Gentas Genel and Zorlu Enerji
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 1.22 times more return on investment than Zorlu Enerji. However, Gentas Genel is 1.22 times more volatile than Zorlu Enerji Elektrik. It trades about 0.12 of its potential returns per unit of risk. Zorlu Enerji Elektrik is currently generating about 0.01 per unit of risk. If you would invest 811.00 in Gentas Genel Metal on September 23, 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 | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Gentas Genel Metal vs. Zorlu Enerji Elektrik
Performance |
Timeline |
Gentas Genel Metal |
Zorlu Enerji Elektrik |
Gentas Genel and Zorlu Enerji Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gentas Genel and Zorlu Enerji
The main advantage of trading using opposite Gentas Genel and Zorlu Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel position performs unexpectedly, Zorlu Enerji 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 Zorlu Enerji will offset losses from the drop in Zorlu Enerji'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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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