Correlation Between MEGA METAL and CW Enerji
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and CW 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 CW 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 CW Enerji SA, you can compare the effects of market volatilities on MEGA METAL and CW 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 CW Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and CW Enerji.
Diversification Opportunities for MEGA METAL and CW Enerji
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MEGA and CWENE is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and CW Enerji SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CW Enerji SA 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 CW Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CW Enerji SA has no effect on the direction of MEGA METAL i.e., MEGA METAL and CW Enerji go up and down completely randomly.
Pair Corralation between MEGA METAL and CW Enerji
Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the CW Enerji. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 1.64 times less risky than CW Enerji. The stock trades about -0.5 of its potential returns per unit of risk. The CW Enerji SA is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 2,130 in CW Enerji SA on November 2, 2024 and sell it today you would lose (108.00) from holding CW Enerji SA or give up 5.07% 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. CW Enerji SA
Performance |
| Timeline |
| MEGA METAL |
| CW Enerji SA |
MEGA METAL and CW Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and CW Enerji
The main advantage of trading using opposite MEGA METAL and CW Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, CW 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 CW Enerji will offset losses from the drop in CW Enerji's long position.| MEGA METAL vs. Koza Anadolu Metal | MEGA METAL vs. Akcansa Cimento Sanayi | MEGA METAL vs. Politeknik Metal Sanayi | MEGA METAL vs. Bms Birlesik Metal |
| CW Enerji vs. SASA Polyester Sanayi | CW Enerji vs. Turkish Airlines | CW Enerji vs. Koc Holding AS | CW Enerji vs. Ford Otomotiv 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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