Correlation Between Koza Anadolu and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu 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 Koza Anadolu and MEGA METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koza Anadolu Metal and MEGA METAL, you can compare the effects of market volatilities on Koza Anadolu 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 Koza Anadolu with a short position of MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and MEGA METAL.
Diversification Opportunities for Koza Anadolu and MEGA METAL
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koza and MEGA is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Koza Anadolu 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 Koza Anadolu Metal 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 Koza Anadolu i.e., Koza Anadolu and MEGA METAL go up and down completely randomly.
Pair Corralation between Koza Anadolu and MEGA METAL
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 1.82 times more return on investment than MEGA METAL. However, Koza Anadolu is 1.82 times more volatile than MEGA METAL. It trades about 0.12 of its potential returns per unit of risk. MEGA METAL is currently generating about -0.25 per unit of risk. If you would invest 6,790 in Koza Anadolu Metal on October 20, 2024 and sell it today you would earn a total of 385.00 from holding Koza Anadolu Metal or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Anadolu Metal vs. MEGA METAL
Performance |
| Timeline |
| Koza Anadolu Metal |
| MEGA METAL |
Koza Anadolu and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and MEGA METAL
The main advantage of trading using opposite Koza Anadolu and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu 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.| Koza Anadolu vs. Koza Altin Isletmeleri | Koza Anadolu vs. Ipek Dogal Enerji | Koza Anadolu vs. Petkim Petrokimya Holding | Koza Anadolu vs. Kardemir Karabuk Demir |
| MEGA METAL vs. Datagate Bilgisayar Malzemeleri | MEGA METAL vs. Koza Anadolu Metal | MEGA METAL vs. Cuhadaroglu Metal Sanayi | MEGA METAL vs. Politeknik 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |