Correlation Between Atlas Menkul and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Atlas Menkul 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 Atlas Menkul and MEGA METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Menkul Kiymetler and MEGA METAL, you can compare the effects of market volatilities on Atlas Menkul 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 Atlas Menkul with a short position of MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Menkul and MEGA METAL.
Diversification Opportunities for Atlas Menkul and MEGA METAL
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Atlas and MEGA is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Menkul Kiymetler and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Atlas Menkul 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 Atlas Menkul Kiymetler 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 Atlas Menkul i.e., Atlas Menkul and MEGA METAL go up and down completely randomly.
Pair Corralation between Atlas Menkul and MEGA METAL
Assuming the 90 days trading horizon Atlas Menkul Kiymetler is expected to generate 1.04 times more return on investment than MEGA METAL. However, Atlas Menkul is 1.04 times more volatile than MEGA METAL. It trades about 0.1 of its potential returns per unit of risk. MEGA METAL is currently generating about 0.07 per unit of risk. If you would invest 613.00 in Atlas Menkul Kiymetler on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Atlas Menkul Kiymetler or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Atlas Menkul Kiymetler vs. MEGA METAL
Performance |
| Timeline |
| Atlas Menkul Kiymetler |
| MEGA METAL |
Atlas Menkul and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Menkul and MEGA METAL
The main advantage of trading using opposite Atlas Menkul and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Menkul 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.| Atlas Menkul vs. Pamel Yenilenebilir Elektrik | Atlas Menkul vs. Bosch Fren Sistemleri | Atlas Menkul vs. Marka Yatirim Holding | Atlas Menkul vs. Dogus Gayrimenkul Yatirim |
| MEGA METAL vs. SASA Polyester Sanayi | MEGA METAL vs. Turkish Airlines | MEGA METAL vs. Koc Holding AS | MEGA METAL 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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