Correlation Between MEGA METAL and ICU Girisim
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and ICU Girisim 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 ICU Girisim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and ICU Girisim Sermayesi, you can compare the effects of market volatilities on MEGA METAL and ICU Girisim 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 ICU Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and ICU Girisim.
Diversification Opportunities for MEGA METAL and ICU Girisim
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MEGA and ICU is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and ICU Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Girisim Sermayesi 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 ICU Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Girisim Sermayesi has no effect on the direction of MEGA METAL i.e., MEGA METAL and ICU Girisim go up and down completely randomly.
Pair Corralation between MEGA METAL and ICU Girisim
Assuming the 90 days trading horizon MEGA METAL is expected to generate 0.35 times more return on investment than ICU Girisim. However, MEGA METAL is 2.89 times less risky than ICU Girisim. It trades about -0.23 of its potential returns per unit of risk. ICU Girisim Sermayesi is currently generating about -0.38 per unit of risk. If you would invest 3,108 in MEGA METAL on December 11, 2024 and sell it today you would lose (488.00) from holding MEGA METAL or give up 15.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
MEGA METAL vs. ICU Girisim Sermayesi
Performance |
| Timeline |
| MEGA METAL |
| ICU Girisim Sermayesi |
MEGA METAL and ICU Girisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and ICU Girisim
The main advantage of trading using opposite MEGA METAL and ICU Girisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, ICU Girisim 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 ICU Girisim will offset losses from the drop in ICU Girisim's long position.| MEGA METAL vs. Cuhadaroglu Metal Sanayi | MEGA METAL vs. Trabzonspor Sportif Yatirim | MEGA METAL vs. Silverline Endustri ve | MEGA METAL vs. Gentas Genel Metal |
| ICU Girisim vs. Sodas Sodyum Sanayi | ICU Girisim vs. Cuhadaroglu Metal Sanayi | ICU Girisim vs. Creditwest Faktoring AS | ICU Girisim vs. Gentas Genel 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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