Correlation Between MEGA METAL and Aksu Enerji
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Aksu Enerji 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 Aksu Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Aksu Enerji ve, you can compare the effects of market volatilities on MEGA METAL and Aksu Enerji 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 Aksu Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Aksu Enerji.
Diversification Opportunities for MEGA METAL and Aksu Enerji
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MEGA and Aksu is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Aksu Enerji ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksu Enerji ve 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 Aksu Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksu Enerji ve has no effect on the direction of MEGA METAL i.e., MEGA METAL and Aksu Enerji go up and down completely randomly.
Pair Corralation between MEGA METAL and Aksu Enerji
Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Aksu Enerji. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 1.97 times less risky than Aksu Enerji. The stock trades about -0.03 of its potential returns per unit of risk. The Aksu Enerji ve is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,090 in Aksu Enerji ve on August 28, 2024 and sell it today you would earn a total of 112.00 from holding Aksu Enerji ve or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
MEGA METAL vs. Aksu Enerji ve
Performance |
| Timeline |
| MEGA METAL |
| Aksu Enerji ve |
MEGA METAL and Aksu Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Aksu Enerji
The main advantage of trading using opposite MEGA METAL and Aksu Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Aksu Enerji 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 Aksu Enerji will offset losses from the drop in Aksu Enerji's long position.| MEGA METAL vs. Turkish Airlines | MEGA METAL vs. Koc Holding AS | MEGA METAL vs. Ford Otomotiv Sanayi | MEGA METAL vs. Turkiye Petrol Rafinerileri |
| Aksu Enerji vs. Cuhadaroglu Metal Sanayi | Aksu Enerji vs. Gentas Genel Metal | Aksu Enerji vs. Turkish Airlines | Aksu Enerji vs. MEGA 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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