Correlation Between MEGA METAL and Dagi Yatirim
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Dagi Yatirim 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 Dagi Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Dagi Yatirim Holding, you can compare the effects of market volatilities on MEGA METAL and Dagi Yatirim 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 Dagi Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Dagi Yatirim.
Diversification Opportunities for MEGA METAL and Dagi Yatirim
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MEGA and Dagi is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Dagi Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dagi Yatirim Holding 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 Dagi Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dagi Yatirim Holding has no effect on the direction of MEGA METAL i.e., MEGA METAL and Dagi Yatirim go up and down completely randomly.
Pair Corralation between MEGA METAL and Dagi Yatirim
Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Dagi Yatirim. In addition to that, MEGA METAL is 1.03 times more volatile than Dagi Yatirim Holding. It trades about -0.06 of its total potential returns per unit of risk. Dagi Yatirim Holding is currently generating about 0.03 per unit of volatility. If you would invest 1,420 in Dagi Yatirim Holding on November 3, 2024 and sell it today you would earn a total of 143.00 from holding Dagi Yatirim Holding or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEGA METAL vs. Dagi Yatirim Holding
Performance |
| Timeline |
| MEGA METAL |
| Dagi Yatirim Holding |
MEGA METAL and Dagi Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Dagi Yatirim
The main advantage of trading using opposite MEGA METAL and Dagi Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Dagi Yatirim 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 Dagi Yatirim will offset losses from the drop in Dagi Yatirim's long position.| MEGA METAL vs. Sekerbank TAS | MEGA METAL vs. Galatasaray Sportif Sinai | MEGA METAL vs. Borlease Otomotiv AS | MEGA METAL vs. ICBC Turkey Bank |
| Dagi Yatirim vs. Turkish Airlines | Dagi Yatirim vs. MEGA METAL | Dagi Yatirim vs. Sodas Sodyum Sanayi | Dagi Yatirim 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 Stocks Directory module to find actively traded stocks across global markets.
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