Correlation Between Cuhadaroglu Metal and Ata Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Cuhadaroglu Metal and Ata Gayrimenkul 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 Cuhadaroglu Metal and Ata Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuhadaroglu Metal Sanayi and Ata Gayrimenkul Yatirim, you can compare the effects of market volatilities on Cuhadaroglu Metal and Ata Gayrimenkul 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 Cuhadaroglu Metal with a short position of Ata Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuhadaroglu Metal and Ata Gayrimenkul.
Diversification Opportunities for Cuhadaroglu Metal and Ata Gayrimenkul
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cuhadaroglu and Ata is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Cuhadaroglu Metal Sanayi and Ata Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ata Gayrimenkul Yatirim and Cuhadaroglu Metal 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 Cuhadaroglu Metal Sanayi are associated (or correlated) with Ata Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ata Gayrimenkul Yatirim has no effect on the direction of Cuhadaroglu Metal i.e., Cuhadaroglu Metal and Ata Gayrimenkul go up and down completely randomly.
Pair Corralation between Cuhadaroglu Metal and Ata Gayrimenkul
Assuming the 90 days trading horizon Cuhadaroglu Metal Sanayi is expected to generate 0.5 times more return on investment than Ata Gayrimenkul. However, Cuhadaroglu Metal Sanayi is 2.01 times less risky than Ata Gayrimenkul. It trades about 0.05 of its potential returns per unit of risk. Ata Gayrimenkul Yatirim is currently generating about -0.04 per unit of risk. If you would invest 2,046 in Cuhadaroglu Metal Sanayi on September 12, 2024 and sell it today you would earn a total of 34.00 from holding Cuhadaroglu Metal Sanayi or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuhadaroglu Metal Sanayi vs. Ata Gayrimenkul Yatirim
Performance |
| Timeline |
| Cuhadaroglu Metal Sanayi |
| Ata Gayrimenkul Yatirim |
Cuhadaroglu Metal and Ata Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuhadaroglu Metal and Ata Gayrimenkul
The main advantage of trading using opposite Cuhadaroglu Metal and Ata Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuhadaroglu Metal position performs unexpectedly, Ata Gayrimenkul 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 Ata Gayrimenkul will offset losses from the drop in Ata Gayrimenkul's long position.| Cuhadaroglu Metal vs. Ege Endustri ve | Cuhadaroglu Metal vs. Turkiye Petrol Rafinerileri | Cuhadaroglu Metal vs. Turkiye Garanti Bankasi | Cuhadaroglu Metal vs. Turkish Airlines |
| Ata Gayrimenkul vs. Sekerbank TAS | Ata Gayrimenkul vs. ICBC Turkey Bank | Ata Gayrimenkul vs. Cuhadaroglu Metal Sanayi | Ata Gayrimenkul vs. Bms Birlesik 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |