Correlation Between MEGA METAL and Akcansa Cimento
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Akcansa Cimento 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 MEGA METAL and Akcansa Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Akcansa Cimento Sanayi, you can compare the effects of market volatilities on MEGA METAL and Akcansa Cimento 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 MEGA METAL with a short position of Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Akcansa Cimento.
Diversification Opportunities for MEGA METAL and Akcansa Cimento
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MEGA and Akcansa is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi and MEGA METAL 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 MEGA METAL are associated (or correlated) with Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of MEGA METAL i.e., MEGA METAL and Akcansa Cimento go up and down completely randomly.
Pair Corralation between MEGA METAL and Akcansa Cimento
Assuming the 90 days trading horizon MEGA METAL is expected to generate 4.54 times less return on investment than Akcansa Cimento. In addition to that, MEGA METAL is 1.36 times more volatile than Akcansa Cimento Sanayi. It trades about 0.02 of its total potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.11 per unit of volatility. If you would invest 4,972 in Akcansa Cimento Sanayi on October 25, 2024 and sell it today you would earn a total of 15,228 from holding Akcansa Cimento Sanayi or generate 306.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 55.96% |
| Values | Daily Returns |
MEGA METAL vs. Akcansa Cimento Sanayi
Performance |
| Timeline |
| MEGA METAL |
| Akcansa Cimento Sanayi |
MEGA METAL and Akcansa Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Akcansa Cimento
The main advantage of trading using opposite MEGA METAL and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Akcansa Cimento 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 Akcansa Cimento will offset losses from the drop in Akcansa Cimento's long position.| MEGA METAL vs. SASA Polyester Sanayi | MEGA METAL vs. Turkish Airlines | MEGA METAL vs. Koc Holding AS | MEGA METAL vs. Ford Otomotiv Sanayi |
| Akcansa Cimento vs. Is Finansal Kiralama | Akcansa Cimento vs. Zorlu Enerji Elektrik | Akcansa Cimento vs. Karsan Otomotiv Sanayi | Akcansa Cimento vs. Eminis Ambalaj 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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