Correlation Between Akcansa Cimento and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and MEGA METAL 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 Akcansa Cimento and MEGA METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akcansa Cimento Sanayi and MEGA METAL, you can compare the effects of market volatilities on Akcansa Cimento and MEGA METAL 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 Akcansa Cimento with a short position of MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and MEGA METAL.
Diversification Opportunities for Akcansa Cimento and MEGA METAL
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Akcansa and MEGA is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Akcansa Cimento 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 Akcansa Cimento Sanayi are associated (or correlated) with MEGA METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEGA METAL has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and MEGA METAL go up and down completely randomly.
Pair Corralation between Akcansa Cimento and MEGA METAL
Assuming the 90 days trading horizon Akcansa Cimento Sanayi is expected to generate 0.74 times more return on investment than MEGA METAL. However, Akcansa Cimento Sanayi is 1.36 times less risky than MEGA METAL. It trades about 0.11 of its potential returns per unit of risk. MEGA METAL is currently generating about 0.02 per unit of risk. If you would invest 4,972 in Akcansa Cimento Sanayi on October 25, 2024 and sell it today you would earn a total of 15,228 from holding Akcansa Cimento Sanayi or generate 306.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 55.96% |
| Values | Daily Returns |
Akcansa Cimento Sanayi vs. MEGA METAL
Performance |
| Timeline |
| Akcansa Cimento Sanayi |
| MEGA METAL |
Akcansa Cimento and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akcansa Cimento and MEGA METAL
The main advantage of trading using opposite Akcansa Cimento and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento position performs unexpectedly, MEGA METAL 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 MEGA METAL will offset losses from the drop in MEGA METAL's long position.| Akcansa Cimento vs. KOC METALURJI | Akcansa Cimento vs. MEGA METAL | Akcansa Cimento vs. Cuhadaroglu Metal Sanayi | Akcansa Cimento vs. Borlease Otomotiv AS |
| MEGA METAL vs. Mackolik Internet Hizmetleri | MEGA METAL vs. CEO Event Medya | MEGA METAL vs. KOC METALURJI | MEGA METAL vs. Gentas Genel Metal |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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