Correlation Between MEGA METAL and Hitit Bilgisayar
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Hitit Bilgisayar 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 Hitit Bilgisayar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Hitit Bilgisayar Hizmetleri, you can compare the effects of market volatilities on MEGA METAL and Hitit Bilgisayar 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 Hitit Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Hitit Bilgisayar.
Diversification Opportunities for MEGA METAL and Hitit Bilgisayar
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MEGA and Hitit is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Hitit Bilgisayar Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitit Bilgisayar Hiz 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 Hitit Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitit Bilgisayar Hiz has no effect on the direction of MEGA METAL i.e., MEGA METAL and Hitit Bilgisayar go up and down completely randomly.
Pair Corralation between MEGA METAL and Hitit Bilgisayar
Assuming the 90 days trading horizon MEGA METAL is expected to generate 3.72 times less return on investment than Hitit Bilgisayar. But when comparing it to its historical volatility, MEGA METAL is 1.29 times less risky than Hitit Bilgisayar. It trades about 0.06 of its potential returns per unit of risk. Hitit Bilgisayar Hizmetleri is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,591 in Hitit Bilgisayar Hizmetleri on September 12, 2024 and sell it today you would earn a total of 357.00 from holding Hitit Bilgisayar Hizmetleri or generate 9.94% 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. Hitit Bilgisayar Hizmetleri
Performance |
| Timeline |
| MEGA METAL |
| Hitit Bilgisayar Hiz |
MEGA METAL and Hitit Bilgisayar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Hitit Bilgisayar
The main advantage of trading using opposite MEGA METAL and Hitit Bilgisayar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Hitit Bilgisayar 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 Hitit Bilgisayar will offset losses from the drop in Hitit Bilgisayar'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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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