Correlation Between CEO Event and MMC Sanayi
Can any of the company-specific risk be diversified away by investing in both CEO Event and MMC Sanayi 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 CEO Event and MMC Sanayi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEO Event Medya and MMC Sanayi ve, you can compare the effects of market volatilities on CEO Event and MMC Sanayi 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 CEO Event with a short position of MMC Sanayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEO Event and MMC Sanayi.
Diversification Opportunities for CEO Event and MMC Sanayi
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between CEO and MMC is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CEO Event Medya and MMC Sanayi ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMC Sanayi ve and CEO Event 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 CEO Event Medya are associated (or correlated) with MMC Sanayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMC Sanayi ve has no effect on the direction of CEO Event i.e., CEO Event and MMC Sanayi go up and down completely randomly.
Pair Corralation between CEO Event and MMC Sanayi
Assuming the 90 days trading horizon CEO Event is expected to generate 1.44 times less return on investment than MMC Sanayi. But when comparing it to its historical volatility, CEO Event Medya is 1.28 times less risky than MMC Sanayi. It trades about 0.06 of its potential returns per unit of risk. MMC Sanayi ve is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,045 in MMC Sanayi ve on August 27, 2024 and sell it today you would earn a total of 1,043 from holding MMC Sanayi ve or generate 99.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEO Event Medya vs. MMC Sanayi ve
Performance |
| Timeline |
| CEO Event Medya |
| MMC Sanayi ve |
CEO Event and MMC Sanayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEO Event and MMC Sanayi
The main advantage of trading using opposite CEO Event and MMC Sanayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEO Event position performs unexpectedly, MMC Sanayi 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 MMC Sanayi will offset losses from the drop in MMC Sanayi's long position.| CEO Event vs. Brisa Bridgestone Sabanci | CEO Event vs. Dogus Gayrimenkul Yatirim | CEO Event vs. IZDEMIR Enerji Elektrik | CEO Event vs. Margun Enerji Uretim |
| MMC Sanayi vs. CEO Event Medya | MMC Sanayi vs. Gentas Genel Metal | MMC Sanayi vs. Koza Anadolu Metal | MMC Sanayi vs. Sekerbank TAS |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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