Correlation Between Kervan Gda and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Kervan Gda 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 Kervan Gda and MEGA METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kervan Gda Sanayi and MEGA METAL, you can compare the effects of market volatilities on Kervan Gda 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 Kervan Gda with a short position of MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kervan Gda and MEGA METAL.
Diversification Opportunities for Kervan Gda and MEGA METAL
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kervan and MEGA is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kervan Gda Sanayi and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Kervan Gda 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 Kervan Gda Sanayi 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 Kervan Gda i.e., Kervan Gda and MEGA METAL go up and down completely randomly.
Pair Corralation between Kervan Gda and MEGA METAL
Assuming the 90 days trading horizon Kervan Gda Sanayi is expected to under-perform the MEGA METAL. In addition to that, Kervan Gda is 2.28 times more volatile than MEGA METAL. It trades about -0.23 of its total potential returns per unit of risk. MEGA METAL is currently generating about -0.49 per unit of volatility. If you would invest 3,222 in MEGA METAL on November 5, 2024 and sell it today you would lose (318.00) from holding MEGA METAL or give up 9.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kervan Gda Sanayi vs. MEGA METAL
Performance |
| Timeline |
| Kervan Gda Sanayi |
| MEGA METAL |
Kervan Gda and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kervan Gda and MEGA METAL
The main advantage of trading using opposite Kervan Gda and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kervan Gda 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.| Kervan Gda vs. Akcansa Cimento Sanayi | Kervan Gda vs. MEGA METAL | Kervan Gda vs. Politeknik Metal Sanayi | Kervan Gda vs. Sekerbank TAS |
| MEGA METAL vs. Qnb Finansbank AS | MEGA METAL vs. Turkiye Kalkinma Bankasi | MEGA METAL vs. Cuhadaroglu Metal Sanayi | MEGA METAL vs. CEO Event Medya |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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