Correlation Between MEGA METAL and Alarko Carrier
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Alarko Carrier 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 Alarko Carrier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Alarko Carrier Sanayi, you can compare the effects of market volatilities on MEGA METAL and Alarko Carrier 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 Alarko Carrier. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Alarko Carrier.
Diversification Opportunities for MEGA METAL and Alarko Carrier
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MEGA and Alarko is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Alarko Carrier Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alarko Carrier 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 Alarko Carrier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alarko Carrier Sanayi has no effect on the direction of MEGA METAL i.e., MEGA METAL and Alarko Carrier go up and down completely randomly.
Pair Corralation between MEGA METAL and Alarko Carrier
Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Alarko Carrier. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 1.98 times less risky than Alarko Carrier. The stock trades about -0.42 of its potential returns per unit of risk. The Alarko Carrier Sanayi is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 103,800 in Alarko Carrier Sanayi on October 28, 2024 and sell it today you would lose (4,450) from holding Alarko Carrier Sanayi or give up 4.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEGA METAL vs. Alarko Carrier Sanayi
Performance |
| Timeline |
| MEGA METAL |
| Alarko Carrier Sanayi |
MEGA METAL and Alarko Carrier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Alarko Carrier
The main advantage of trading using opposite MEGA METAL and Alarko Carrier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Alarko Carrier 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 Alarko Carrier will offset losses from the drop in Alarko Carrier's long position.| MEGA METAL vs. Gentas Genel Metal | MEGA METAL vs. Mackolik Internet Hizmetleri | MEGA METAL vs. Politeknik Metal Sanayi | MEGA METAL vs. Koza Anadolu Metal |
| Alarko Carrier vs. Sekerbank TAS | Alarko Carrier vs. Turkiye Kalkinma Bankasi | Alarko Carrier vs. Cuhadaroglu Metal Sanayi | Alarko Carrier 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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