Correlation Between Katmerciler Arac and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Katmerciler Arac 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 Katmerciler Arac and MEGA METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Katmerciler Arac Ustu and MEGA METAL, you can compare the effects of market volatilities on Katmerciler Arac 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 Katmerciler Arac with a short position of MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katmerciler Arac and MEGA METAL.
Diversification Opportunities for Katmerciler Arac and MEGA METAL
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Katmerciler and MEGA is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Katmerciler Arac Ustu and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Katmerciler Arac 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 Katmerciler Arac Ustu 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 Katmerciler Arac i.e., Katmerciler Arac and MEGA METAL go up and down completely randomly.
Pair Corralation between Katmerciler Arac and MEGA METAL
Assuming the 90 days trading horizon Katmerciler Arac Ustu is expected to generate 1.34 times more return on investment than MEGA METAL. However, Katmerciler Arac is 1.34 times more volatile than MEGA METAL. It trades about 0.04 of its potential returns per unit of risk. MEGA METAL is currently generating about 0.01 per unit of risk. If you would invest 197.00 in Katmerciler Arac Ustu on September 5, 2024 and sell it today you would earn a total of 19.00 from holding Katmerciler Arac Ustu or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Katmerciler Arac Ustu vs. MEGA METAL
Performance |
| Timeline |
| Katmerciler Arac Ustu |
| MEGA METAL |
Katmerciler Arac and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Katmerciler Arac and MEGA METAL
The main advantage of trading using opposite Katmerciler Arac and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katmerciler Arac 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.| Katmerciler Arac vs. MEGA METAL | Katmerciler Arac vs. Creditwest Faktoring AS | Katmerciler Arac vs. Borlease Otomotiv AS | Katmerciler Arac vs. Koza Anadolu Metal |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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