Correlation Between MEGA METAL and Ihlas Yayin
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Ihlas Yayin 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 Yayin 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 Yayin Holding, you can compare the effects of market volatilities on MEGA METAL and Ihlas Yayin 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 Yayin. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Ihlas Yayin.
Diversification Opportunities for MEGA METAL and Ihlas Yayin
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MEGA and Ihlas is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Ihlas Yayin Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihlas Yayin 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 Ihlas Yayin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihlas Yayin Holding has no effect on the direction of MEGA METAL i.e., MEGA METAL and Ihlas Yayin go up and down completely randomly.
Pair Corralation between MEGA METAL and Ihlas Yayin
Assuming the 90 days trading horizon MEGA METAL is expected to generate 4.06 times less return on investment than Ihlas Yayin. But when comparing it to its historical volatility, MEGA METAL is 1.06 times less risky than Ihlas Yayin. It trades about 0.02 of its potential returns per unit of risk. Ihlas Yayin Holding is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Ihlas Yayin Holding on October 13, 2024 and sell it today you would earn a total of 266.00 from holding Ihlas Yayin Holding or generate 266.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 54.23% |
| Values | Daily Returns |
MEGA METAL vs. Ihlas Yayin Holding
Performance |
| Timeline |
| MEGA METAL |
| Ihlas Yayin Holding |
MEGA METAL and Ihlas Yayin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Ihlas Yayin
The main advantage of trading using opposite MEGA METAL and Ihlas Yayin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Ihlas Yayin 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 Yayin will offset losses from the drop in Ihlas Yayin's long position.| MEGA METAL vs. SASA Polyester Sanayi | MEGA METAL vs. Turkish Airlines | MEGA METAL vs. Koc Holding AS | MEGA METAL vs. Ford Otomotiv Sanayi |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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