Correlation Between Mackolik Internet and Temapol Polimer
Can any of the company-specific risk be diversified away by investing in both Mackolik Internet and Temapol Polimer 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 Temapol Polimer 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 Temapol Polimer Plastik, you can compare the effects of market volatilities on Mackolik Internet and Temapol Polimer 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 Temapol Polimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackolik Internet and Temapol Polimer.
Diversification Opportunities for Mackolik Internet and Temapol Polimer
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mackolik and Temapol is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mackolik Internet Hizmetleri and Temapol Polimer Plastik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Temapol Polimer Plastik 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 Temapol Polimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Temapol Polimer Plastik has no effect on the direction of Mackolik Internet i.e., Mackolik Internet and Temapol Polimer go up and down completely randomly.
Pair Corralation between Mackolik Internet and Temapol Polimer
Assuming the 90 days trading horizon Mackolik Internet is expected to generate 10.43 times less return on investment than Temapol Polimer. But when comparing it to its historical volatility, Mackolik Internet Hizmetleri is 1.21 times less risky than Temapol Polimer. It trades about 0.02 of its potential returns per unit of risk. Temapol Polimer Plastik is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 7,240 in Temapol Polimer Plastik on October 25, 2024 and sell it today you would earn a total of 790.00 from holding Temapol Polimer Plastik or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mackolik Internet Hizmetleri vs. Temapol Polimer Plastik
Performance |
| Timeline |
| Mackolik Internet |
| Temapol Polimer Plastik |
Mackolik Internet and Temapol Polimer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackolik Internet and Temapol Polimer
The main advantage of trading using opposite Mackolik Internet and Temapol Polimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackolik Internet position performs unexpectedly, Temapol Polimer 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 Temapol Polimer will offset losses from the drop in Temapol Polimer's long position.| Mackolik Internet vs. Pamel Yenilenebilir Elektrik | Mackolik Internet vs. Platform Turizm Tasimacilik | Mackolik Internet vs. Brisa Bridgestone Sabanci | Mackolik Internet vs. RONESANS GAYRIMENKUL YAT |
| Temapol Polimer vs. Gentas Genel Metal | Temapol Polimer vs. Politeknik Metal Sanayi | Temapol Polimer vs. Akbank TAS | Temapol Polimer vs. Mackolik Internet Hizmetleri |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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