Correlation Between Kafein Yazilim and Margun Enerji
Can any of the company-specific risk be diversified away by investing in both Kafein Yazilim 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 Kafein Yazilim and Margun Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kafein Yazilim and Margun Enerji Uretim, you can compare the effects of market volatilities on Kafein Yazilim 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 Kafein Yazilim with a short position of Margun Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kafein Yazilim and Margun Enerji.
Diversification Opportunities for Kafein Yazilim and Margun Enerji
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kafein and Margun is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kafein Yazilim 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 Kafein Yazilim 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 Kafein Yazilim 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 Kafein Yazilim i.e., Kafein Yazilim and Margun Enerji go up and down completely randomly.
Pair Corralation between Kafein Yazilim and Margun Enerji
Assuming the 90 days trading horizon Kafein Yazilim is expected to generate 1.04 times more return on investment than Margun Enerji. However, Kafein Yazilim is 1.04 times more volatile than Margun Enerji Uretim. It trades about 0.07 of its potential returns per unit of risk. Margun Enerji Uretim is currently generating about 0.04 per unit of risk. If you would invest 3,200 in Kafein Yazilim on September 3, 2024 and sell it today you would earn a total of 5,260 from holding Kafein Yazilim or generate 164.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.99% |
| Values | Daily Returns |
Kafein Yazilim vs. Margun Enerji Uretim
Performance |
| Timeline |
| Kafein Yazilim |
| Margun Enerji Uretim |
Kafein Yazilim and Margun Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kafein Yazilim and Margun Enerji
The main advantage of trading using opposite Kafein Yazilim and Margun Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kafein Yazilim 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.| Kafein Yazilim vs. Silverline Endustri ve | Kafein Yazilim vs. Mackolik Internet Hizmetleri | Kafein Yazilim vs. Politeknik Metal Sanayi | Kafein Yazilim vs. Koza Anadolu Metal |
| Margun Enerji vs. SASA Polyester Sanayi | Margun Enerji vs. Turkish Airlines | Margun Enerji vs. Koc Holding AS | Margun Enerji 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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