Correlation Between Birikim Varlik and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Birikim Varlik 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 Birikim Varlik and MEGA METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Birikim Varlik Yonetim and MEGA METAL, you can compare the effects of market volatilities on Birikim Varlik 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 Birikim Varlik with a short position of MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birikim Varlik and MEGA METAL.
Diversification Opportunities for Birikim Varlik and MEGA METAL
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Birikim and MEGA is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Birikim Varlik Yonetim and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Birikim Varlik 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 Birikim Varlik Yonetim 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 Birikim Varlik i.e., Birikim Varlik and MEGA METAL go up and down completely randomly.
Pair Corralation between Birikim Varlik and MEGA METAL
Assuming the 90 days trading horizon Birikim Varlik is expected to generate 1.13 times less return on investment than MEGA METAL. In addition to that, Birikim Varlik is 1.12 times more volatile than MEGA METAL. It trades about 0.02 of its total potential returns per unit of risk. MEGA METAL is currently generating about 0.02 per unit of volatility. If you would invest 3,112 in MEGA METAL on September 4, 2024 and sell it today you would earn a total of 42.00 from holding MEGA METAL or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.37% |
| Values | Daily Returns |
Birikim Varlik Yonetim vs. MEGA METAL
Performance |
| Timeline |
| Birikim Varlik Yonetim |
| MEGA METAL |
Birikim Varlik and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Birikim Varlik and MEGA METAL
The main advantage of trading using opposite Birikim Varlik and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Birikim Varlik 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.| Birikim Varlik vs. Gentas Genel Metal | Birikim Varlik vs. Bms Birlesik Metal | Birikim Varlik vs. MEGA METAL | Birikim Varlik vs. Galatasaray Sportif Sinai |
| MEGA METAL vs. Akbank TAS | MEGA METAL vs. Politeknik Metal Sanayi | MEGA METAL vs. Koza Anadolu Metal | MEGA METAL vs. E Data Teknoloji Pazarlama |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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