Correlation Between Is Yatirim and Margun Enerji
Can any of the company-specific risk be diversified away by investing in both Is Yatirim and Margun Enerji 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 Yatirim and Margun Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Is Yatirim Ortakligi and Margun Enerji Uretim, you can compare the effects of market volatilities on Is Yatirim and Margun Enerji 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 Yatirim with a short position of Margun Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Yatirim and Margun Enerji.
Diversification Opportunities for Is Yatirim and Margun Enerji
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ISYAT and Margun is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Is Yatirim Ortakligi and Margun Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Margun Enerji Uretim and Is 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 Is Yatirim Ortakligi are associated (or correlated) with Margun Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Margun Enerji Uretim has no effect on the direction of Is Yatirim i.e., Is Yatirim and Margun Enerji go up and down completely randomly.
Pair Corralation between Is Yatirim and Margun Enerji
Assuming the 90 days trading horizon Is Yatirim Ortakligi is expected to generate 2.27 times more return on investment than Margun Enerji. However, Is Yatirim is 2.27 times more volatile than Margun Enerji Uretim. It trades about 0.1 of its potential returns per unit of risk. Margun Enerji Uretim is currently generating about -0.31 per unit of risk. If you would invest 803.00 in Is Yatirim Ortakligi on August 30, 2024 and sell it today you would earn a total of 50.00 from holding Is Yatirim Ortakligi or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Is Yatirim Ortakligi vs. Margun Enerji Uretim
Performance |
| Timeline |
| Is Yatirim Ortakligi |
| Margun Enerji Uretim |
Is Yatirim and Margun Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Is Yatirim and Margun Enerji
The main advantage of trading using opposite Is Yatirim and Margun Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Is Yatirim position performs unexpectedly, Margun Enerji 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 Margun Enerji will offset losses from the drop in Margun Enerji's long position.| Is Yatirim vs. Turkish Airlines | Is Yatirim vs. Qnb Finansbank AS | Is Yatirim vs. Cuhadaroglu Metal Sanayi | Is Yatirim vs. ICBC Turkey Bank |
| Margun Enerji vs. Qnb Finansbank AS | Margun Enerji vs. MEGA METAL | Margun Enerji vs. Akcansa Cimento Sanayi | Margun Enerji vs. Cuhadaroglu Metal 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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