Correlation Between Margun Enerji and Pamel Yenilenebilir
Can any of the company-specific risk be diversified away by investing in both Margun Enerji and Pamel Yenilenebilir 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 Pamel Yenilenebilir 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 Pamel Yenilenebilir Elektrik, you can compare the effects of market volatilities on Margun Enerji and Pamel Yenilenebilir 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 Pamel Yenilenebilir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Margun Enerji and Pamel Yenilenebilir.
Diversification Opportunities for Margun Enerji and Pamel Yenilenebilir
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Margun and Pamel is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Margun Enerji Uretim and Pamel Yenilenebilir Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pamel Yenilenebilir 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 Pamel Yenilenebilir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pamel Yenilenebilir has no effect on the direction of Margun Enerji i.e., Margun Enerji and Pamel Yenilenebilir go up and down completely randomly.
Pair Corralation between Margun Enerji and Pamel Yenilenebilir
Assuming the 90 days trading horizon Margun Enerji Uretim is expected to generate 1.25 times more return on investment than Pamel Yenilenebilir. However, Margun Enerji is 1.25 times more volatile than Pamel Yenilenebilir Elektrik. It trades about 0.03 of its potential returns per unit of risk. Pamel Yenilenebilir Elektrik is currently generating about -0.02 per unit of risk. If you would invest 1,591 in Margun Enerji Uretim on August 28, 2024 and sell it today you would earn a total of 327.00 from holding Margun Enerji Uretim or generate 20.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Margun Enerji Uretim vs. Pamel Yenilenebilir Elektrik
Performance |
| Timeline |
| Margun Enerji Uretim |
| Pamel Yenilenebilir |
Margun Enerji and Pamel Yenilenebilir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Margun Enerji and Pamel Yenilenebilir
The main advantage of trading using opposite Margun Enerji and Pamel Yenilenebilir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Margun Enerji position performs unexpectedly, Pamel Yenilenebilir 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 Pamel Yenilenebilir will offset losses from the drop in Pamel Yenilenebilir'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 |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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