Correlation Between Margun Enerji and Sodas Sodyum
Can any of the company-specific risk be diversified away by investing in both Margun Enerji and Sodas Sodyum 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 Sodas Sodyum 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 Sodas Sodyum Sanayi, you can compare the effects of market volatilities on Margun Enerji and Sodas Sodyum 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 Sodas Sodyum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Margun Enerji and Sodas Sodyum.
Diversification Opportunities for Margun Enerji and Sodas Sodyum
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Margun and Sodas is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Margun Enerji Uretim and Sodas Sodyum Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sodas Sodyum Sanayi 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 Sodas Sodyum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sodas Sodyum Sanayi has no effect on the direction of Margun Enerji i.e., Margun Enerji and Sodas Sodyum go up and down completely randomly.
Pair Corralation between Margun Enerji and Sodas Sodyum
Assuming the 90 days trading horizon Margun Enerji is expected to generate 1.77 times less return on investment than Sodas Sodyum. But when comparing it to its historical volatility, Margun Enerji Uretim is 1.21 times less risky than Sodas Sodyum. It trades about 0.06 of its potential returns per unit of risk. Sodas Sodyum Sanayi is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,840 in Sodas Sodyum Sanayi on August 27, 2024 and sell it today you would earn a total of 8,080 from holding Sodas Sodyum Sanayi or generate 284.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.89% |
| Values | Daily Returns |
Margun Enerji Uretim vs. Sodas Sodyum Sanayi
Performance |
| Timeline |
| Margun Enerji Uretim |
| Sodas Sodyum Sanayi |
Margun Enerji and Sodas Sodyum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Margun Enerji and Sodas Sodyum
The main advantage of trading using opposite Margun Enerji and Sodas Sodyum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Margun Enerji position performs unexpectedly, Sodas Sodyum 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 Sodas Sodyum will offset losses from the drop in Sodas Sodyum's long position.| Margun Enerji vs. Sodas Sodyum Sanayi | Margun Enerji vs. Bms Birlesik Metal | Margun Enerji vs. Turkiye Kalkinma Bankasi | Margun Enerji vs. Creditwest Faktoring AS |
| Sodas Sodyum vs. Qnb Finansbank AS | Sodas Sodyum vs. QNB Finans Finansal | Sodas Sodyum vs. Turkiye Kalkinma Bankasi | Sodas Sodyum vs. Kocaer Celik Sanayi |
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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