Correlation Between MEGA METAL and Escort Teknoloji
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Escort Teknoloji 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 Escort Teknoloji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Escort Teknoloji Yatirim, you can compare the effects of market volatilities on MEGA METAL and Escort Teknoloji 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 Escort Teknoloji. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Escort Teknoloji.
Diversification Opportunities for MEGA METAL and Escort Teknoloji
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MEGA and Escort is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Escort Teknoloji Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escort Teknoloji 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 Escort Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escort Teknoloji Yatirim has no effect on the direction of MEGA METAL i.e., MEGA METAL and Escort Teknoloji go up and down completely randomly.
Pair Corralation between MEGA METAL and Escort Teknoloji
Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Escort Teknoloji. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 2.15 times less risky than Escort Teknoloji. The stock trades about -0.27 of its potential returns per unit of risk. The Escort Teknoloji Yatirim is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,260 in Escort Teknoloji Yatirim on October 23, 2024 and sell it today you would earn a total of 280.00 from holding Escort Teknoloji Yatirim or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEGA METAL vs. Escort Teknoloji Yatirim
Performance |
| Timeline |
| MEGA METAL |
| Escort Teknoloji Yatirim |
MEGA METAL and Escort Teknoloji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Escort Teknoloji
The main advantage of trading using opposite MEGA METAL and Escort Teknoloji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Escort Teknoloji 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 Escort Teknoloji will offset losses from the drop in Escort Teknoloji's long position.| MEGA METAL vs. Trabzonspor Sportif Yatirim | MEGA METAL vs. Creditwest Faktoring AS | MEGA METAL vs. Bms Birlesik Metal | MEGA METAL vs. Politeknik Metal Sanayi |
| Escort Teknoloji vs. Politeknik Metal Sanayi | Escort Teknoloji vs. MEGA METAL | Escort Teknoloji vs. Gentas Genel Metal | Escort Teknoloji vs. E Data Teknoloji Pazarlama |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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