Correlation Between Mackolik Internet and Birlik Mensucat
Can any of the company-specific risk be diversified away by investing in both Mackolik Internet and Birlik Mensucat 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 Mackolik Internet and Birlik Mensucat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mackolik Internet Hizmetleri and Birlik Mensucat Ticaret, you can compare the effects of market volatilities on Mackolik Internet and Birlik Mensucat 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 Mackolik Internet with a short position of Birlik Mensucat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackolik Internet and Birlik Mensucat.
Diversification Opportunities for Mackolik Internet and Birlik Mensucat
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mackolik and Birlik is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Mackolik Internet Hizmetleri and Birlik Mensucat Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birlik Mensucat Ticaret and Mackolik Internet 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 Mackolik Internet Hizmetleri are associated (or correlated) with Birlik Mensucat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birlik Mensucat Ticaret has no effect on the direction of Mackolik Internet i.e., Mackolik Internet and Birlik Mensucat go up and down completely randomly.
Pair Corralation between Mackolik Internet and Birlik Mensucat
Assuming the 90 days trading horizon Mackolik Internet is expected to generate 1.12 times less return on investment than Birlik Mensucat. But when comparing it to its historical volatility, Mackolik Internet Hizmetleri is 2.53 times less risky than Birlik Mensucat. It trades about 0.3 of its potential returns per unit of risk. Birlik Mensucat Ticaret is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 516.00 in Birlik Mensucat Ticaret on August 31, 2024 and sell it today you would earn a total of 144.00 from holding Birlik Mensucat Ticaret or generate 27.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mackolik Internet Hizmetleri vs. Birlik Mensucat Ticaret
Performance |
| Timeline |
| Mackolik Internet |
| Birlik Mensucat Ticaret |
Mackolik Internet and Birlik Mensucat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackolik Internet and Birlik Mensucat
The main advantage of trading using opposite Mackolik Internet and Birlik Mensucat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackolik Internet position performs unexpectedly, Birlik Mensucat 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 Birlik Mensucat will offset losses from the drop in Birlik Mensucat's long position.| Mackolik Internet vs. Birlik Mensucat Ticaret | Mackolik Internet vs. Brisa Bridgestone Sabanci | Mackolik Internet vs. Dogus Gayrimenkul Yatirim | Mackolik Internet vs. IZDEMIR Enerji Elektrik |
| Birlik Mensucat vs. Ford Otomotiv Sanayi | Birlik Mensucat vs. Eregli Demir ve | Birlik Mensucat vs. Turkiye Petrol Rafinerileri | Birlik Mensucat vs. Turkiye Sise ve |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |