Correlation Between MEGA METAL and Ihlas Gazetecilik
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Ihlas Gazetecilik 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 Ihlas Gazetecilik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Ihlas Gazetecilik AS, you can compare the effects of market volatilities on MEGA METAL and Ihlas Gazetecilik 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 Ihlas Gazetecilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Ihlas Gazetecilik.
Diversification Opportunities for MEGA METAL and Ihlas Gazetecilik
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MEGA and Ihlas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Ihlas Gazetecilik AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihlas Gazetecilik 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 Ihlas Gazetecilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihlas Gazetecilik has no effect on the direction of MEGA METAL i.e., MEGA METAL and Ihlas Gazetecilik go up and down completely randomly.
Pair Corralation between MEGA METAL and Ihlas Gazetecilik
Assuming the 90 days trading horizon MEGA METAL is expected to generate 1.09 times less return on investment than Ihlas Gazetecilik. In addition to that, MEGA METAL is 1.18 times more volatile than Ihlas Gazetecilik AS. It trades about 0.02 of its total potential returns per unit of risk. Ihlas Gazetecilik AS is currently generating about 0.03 per unit of volatility. If you would invest 165.00 in Ihlas Gazetecilik AS on September 4, 2024 and sell it today you would earn a total of 38.00 from holding Ihlas Gazetecilik AS or generate 23.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 48.59% |
| Values | Daily Returns |
MEGA METAL vs. Ihlas Gazetecilik AS
Performance |
| Timeline |
| MEGA METAL |
| Ihlas Gazetecilik |
MEGA METAL and Ihlas Gazetecilik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Ihlas Gazetecilik
The main advantage of trading using opposite MEGA METAL and Ihlas Gazetecilik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Ihlas Gazetecilik 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 Ihlas Gazetecilik will offset losses from the drop in Ihlas Gazetecilik's long position.| MEGA METAL vs. Akbank TAS | MEGA METAL vs. Politeknik Metal Sanayi | MEGA METAL vs. Koza Anadolu Metal | MEGA METAL vs. E Data Teknoloji Pazarlama |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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