Correlation Between Guler Yatirim and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Guler Yatirim 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 Guler Yatirim and MEGA METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guler Yatirim Holding and MEGA METAL, you can compare the effects of market volatilities on Guler Yatirim 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 Guler Yatirim with a short position of MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guler Yatirim and MEGA METAL.
Diversification Opportunities for Guler Yatirim and MEGA METAL
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guler and MEGA is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Guler Yatirim Holding and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Guler Yatirim 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 Guler Yatirim Holding 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 Guler Yatirim i.e., Guler Yatirim and MEGA METAL go up and down completely randomly.
Pair Corralation between Guler Yatirim and MEGA METAL
Assuming the 90 days trading horizon Guler Yatirim Holding is expected to under-perform the MEGA METAL. In addition to that, Guler Yatirim is 1.04 times more volatile than MEGA METAL. It trades about -0.11 of its total potential returns per unit of risk. MEGA METAL is currently generating about 0.06 per unit of volatility. If you would invest 2,918 in MEGA METAL on January 14, 2025 and sell it today you would earn a total of 90.00 from holding MEGA METAL or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guler Yatirim Holding vs. MEGA METAL
Performance |
| Timeline |
| Guler Yatirim Holding |
| MEGA METAL |
Guler Yatirim and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guler Yatirim and MEGA METAL
The main advantage of trading using opposite Guler Yatirim and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guler Yatirim 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.| Guler Yatirim vs. MEGA METAL | Guler Yatirim vs. Cuhadaroglu Metal Sanayi | Guler Yatirim vs. Gentas Genel Metal | Guler Yatirim vs. Mackolik Internet Hizmetleri |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |