Correlation Between Gozde Girisim and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Gozde Girisim 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 Gozde Girisim and MEGA METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gozde Girisim Sermayesi and MEGA METAL, you can compare the effects of market volatilities on Gozde Girisim 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 Gozde Girisim with a short position of MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gozde Girisim and MEGA METAL.
Diversification Opportunities for Gozde Girisim and MEGA METAL
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gozde and MEGA is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Gozde Girisim Sermayesi and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Gozde Girisim 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 Gozde Girisim Sermayesi 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 Gozde Girisim i.e., Gozde Girisim and MEGA METAL go up and down completely randomly.
Pair Corralation between Gozde Girisim and MEGA METAL
Assuming the 90 days trading horizon Gozde Girisim Sermayesi is expected to under-perform the MEGA METAL. In addition to that, Gozde Girisim is 1.14 times more volatile than MEGA METAL. It trades about -0.1 of its total potential returns per unit of risk. MEGA METAL is currently generating about -0.09 per unit of volatility. If you would invest 3,516 in MEGA METAL on October 24, 2024 and sell it today you would lose (564.00) from holding MEGA METAL or give up 16.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.82% |
| Values | Daily Returns |
Gozde Girisim Sermayesi vs. MEGA METAL
Performance |
| Timeline |
| Gozde Girisim Sermayesi |
| MEGA METAL |
Gozde Girisim and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gozde Girisim and MEGA METAL
The main advantage of trading using opposite Gozde Girisim and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gozde Girisim 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.| Gozde Girisim vs. MEGA METAL | Gozde Girisim vs. Koza Anadolu Metal | Gozde Girisim vs. Akcansa Cimento Sanayi | Gozde Girisim vs. Bms Birlesik Metal |
| MEGA METAL vs. Bms Birlesik Metal | MEGA METAL vs. E Data Teknoloji Pazarlama | MEGA METAL vs. Turkish Airlines | MEGA METAL vs. Galatasaray Sportif Sinai |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |