Correlation Between Is Finansal and MMC Sanayi
Can any of the company-specific risk be diversified away by investing in both Is Finansal 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 Is Finansal and MMC Sanayi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Is Finansal Kiralama and MMC Sanayi ve, you can compare the effects of market volatilities on Is Finansal 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 Is Finansal with a short position of MMC Sanayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Finansal and MMC Sanayi.
Diversification Opportunities for Is Finansal and MMC Sanayi
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ISFIN and MMC is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Is Finansal Kiralama 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 Is Finansal 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 Is Finansal Kiralama 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 Is Finansal i.e., Is Finansal and MMC Sanayi go up and down completely randomly.
Pair Corralation between Is Finansal and MMC Sanayi
Assuming the 90 days trading horizon Is Finansal is expected to generate 1.77 times less return on investment than MMC Sanayi. But when comparing it to its historical volatility, Is Finansal Kiralama is 1.37 times less risky than MMC Sanayi. It trades about 0.21 of its potential returns per unit of risk. MMC Sanayi ve is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,280 in MMC Sanayi ve on December 10, 2024 and sell it today you would earn a total of 382.00 from holding MMC Sanayi ve or generate 16.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Is Finansal Kiralama vs. MMC Sanayi ve
Performance |
| Timeline |
| Is Finansal Kiralama |
| MMC Sanayi ve |
Is Finansal and MMC Sanayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Is Finansal and MMC Sanayi
The main advantage of trading using opposite Is Finansal and MMC Sanayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Is Finansal 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.| Is Finansal vs. Is Gayrimenkul Yatirim | ||
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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