Correlation Between MEGA METAL and Anatolia Tani
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Anatolia Tani 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 Anatolia Tani into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Anatolia Tani ve, you can compare the effects of market volatilities on MEGA METAL and Anatolia Tani 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 Anatolia Tani. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Anatolia Tani.
Diversification Opportunities for MEGA METAL and Anatolia Tani
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MEGA and Anatolia is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Anatolia Tani ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anatolia Tani 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 Anatolia Tani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anatolia Tani ve has no effect on the direction of MEGA METAL i.e., MEGA METAL and Anatolia Tani go up and down completely randomly.
Pair Corralation between MEGA METAL and Anatolia Tani
Assuming the 90 days trading horizon MEGA METAL is expected to generate 2.23 times less return on investment than Anatolia Tani. But when comparing it to its historical volatility, MEGA METAL is 1.42 times less risky than Anatolia Tani. It trades about 0.02 of its potential returns per unit of risk. Anatolia Tani ve is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,493 in Anatolia Tani ve on October 25, 2024 and sell it today you would lose (2.00) from holding Anatolia Tani ve or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 55.87% |
| Values | Daily Returns |
MEGA METAL vs. Anatolia Tani ve
Performance |
| Timeline |
| MEGA METAL |
| Anatolia Tani ve |
MEGA METAL and Anatolia Tani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Anatolia Tani
The main advantage of trading using opposite MEGA METAL and Anatolia Tani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Anatolia Tani 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 Anatolia Tani will offset losses from the drop in Anatolia Tani'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 |
| Anatolia Tani vs. Qnb Finansbank AS | Anatolia Tani vs. Datagate Bilgisayar Malzemeleri | Anatolia Tani vs. E Data Teknoloji Pazarlama | Anatolia Tani vs. Koza Anadolu 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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