Correlation Between MEGA METAL and Ata Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Ata Gayrimenkul 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 Ata Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Ata Gayrimenkul Yatirim, you can compare the effects of market volatilities on MEGA METAL and Ata Gayrimenkul 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 Ata Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Ata Gayrimenkul.
Diversification Opportunities for MEGA METAL and Ata Gayrimenkul
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between MEGA and Ata is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Ata Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ata Gayrimenkul Yatirim 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 Ata Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ata Gayrimenkul Yatirim has no effect on the direction of MEGA METAL i.e., MEGA METAL and Ata Gayrimenkul go up and down completely randomly.
Pair Corralation between MEGA METAL and Ata Gayrimenkul
Assuming the 90 days trading horizon MEGA METAL is expected to generate 0.6 times more return on investment than Ata Gayrimenkul. However, MEGA METAL is 1.66 times less risky than Ata Gayrimenkul. It trades about 0.01 of its potential returns per unit of risk. Ata Gayrimenkul Yatirim is currently generating about -0.04 per unit of risk. If you would invest 3,214 in MEGA METAL on September 12, 2024 and sell it today you would earn a total of 4.00 from holding MEGA METAL or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEGA METAL vs. Ata Gayrimenkul Yatirim
Performance |
| Timeline |
| MEGA METAL |
| Ata Gayrimenkul Yatirim |
MEGA METAL and Ata Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Ata Gayrimenkul
The main advantage of trading using opposite MEGA METAL and Ata Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Ata Gayrimenkul 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 Ata Gayrimenkul will offset losses from the drop in Ata Gayrimenkul's long position.| MEGA METAL vs. Bms Birlesik Metal | MEGA METAL vs. Koza Anadolu Metal | MEGA METAL vs. Politeknik Metal Sanayi | MEGA METAL vs. Gentas Genel Metal |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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