Correlation Between Margun Enerji and Hitit Bilgisayar
Can any of the company-specific risk be diversified away by investing in both Margun Enerji and Hitit Bilgisayar 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 Margun Enerji and Hitit Bilgisayar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Margun Enerji Uretim and Hitit Bilgisayar Hizmetleri, you can compare the effects of market volatilities on Margun Enerji and Hitit Bilgisayar 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 Margun Enerji with a short position of Hitit Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Margun Enerji and Hitit Bilgisayar.
Diversification Opportunities for Margun Enerji and Hitit Bilgisayar
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Margun and Hitit is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Margun Enerji Uretim and Hitit Bilgisayar Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitit Bilgisayar Hiz and Margun Enerji 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 Margun Enerji Uretim are associated (or correlated) with Hitit Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitit Bilgisayar Hiz has no effect on the direction of Margun Enerji i.e., Margun Enerji and Hitit Bilgisayar go up and down completely randomly.
Pair Corralation between Margun Enerji and Hitit Bilgisayar
Assuming the 90 days trading horizon Margun Enerji Uretim is expected to generate 1.21 times more return on investment than Hitit Bilgisayar. However, Margun Enerji is 1.21 times more volatile than Hitit Bilgisayar Hizmetleri. It trades about 0.07 of its potential returns per unit of risk. Hitit Bilgisayar Hizmetleri is currently generating about 0.03 per unit of risk. If you would invest 1,335 in Margun Enerji Uretim on August 28, 2024 and sell it today you would earn a total of 583.00 from holding Margun Enerji Uretim or generate 43.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Margun Enerji Uretim vs. Hitit Bilgisayar Hizmetleri
Performance |
| Timeline |
| Margun Enerji Uretim |
| Hitit Bilgisayar Hiz |
Margun Enerji and Hitit Bilgisayar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Margun Enerji and Hitit Bilgisayar
The main advantage of trading using opposite Margun Enerji and Hitit Bilgisayar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Margun Enerji position performs unexpectedly, Hitit Bilgisayar 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 Hitit Bilgisayar will offset losses from the drop in Hitit Bilgisayar's long position.| Margun Enerji vs. Qnb Finansbank AS | Margun Enerji vs. Gentas Genel Metal | Margun Enerji vs. Cuhadaroglu Metal Sanayi | Margun Enerji vs. Koza Anadolu Metal |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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