Correlation Between MEGA METAL and Turkiye Is
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Turkiye Is 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 Turkiye Is into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Turkiye Is Bankasi, you can compare the effects of market volatilities on MEGA METAL and Turkiye Is 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 Turkiye Is. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Turkiye Is.
Diversification Opportunities for MEGA METAL and Turkiye Is
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MEGA and Turkiye is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Turkiye Is Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Is Bankasi 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 Turkiye Is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Is Bankasi has no effect on the direction of MEGA METAL i.e., MEGA METAL and Turkiye Is go up and down completely randomly.
Pair Corralation between MEGA METAL and Turkiye Is
Assuming the 90 days trading horizon MEGA METAL is expected to generate 1.02 times more return on investment than Turkiye Is. However, MEGA METAL is 1.02 times more volatile than Turkiye Is Bankasi. It trades about 0.02 of its potential returns per unit of risk. Turkiye Is Bankasi is currently generating about 0.01 per unit of risk. If you would invest 3,112 in MEGA METAL on August 26, 2024 and sell it today you would lose (40.00) from holding MEGA METAL or give up 1.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.11% |
| Values | Daily Returns |
MEGA METAL vs. Turkiye Is Bankasi
Performance |
| Timeline |
| MEGA METAL |
| Turkiye Is Bankasi |
MEGA METAL and Turkiye Is Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Turkiye Is
The main advantage of trading using opposite MEGA METAL and Turkiye Is positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Turkiye Is 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 Turkiye Is will offset losses from the drop in Turkiye Is' long position.| MEGA METAL vs. Creditwest Faktoring AS | MEGA METAL vs. Akbank TAS | MEGA METAL vs. Cuhadaroglu Metal Sanayi | MEGA METAL vs. Silverline Endustri ve |
| Turkiye Is vs. Sekerbank TAS | Turkiye Is vs. MEGA METAL | Turkiye Is vs. Creditwest Faktoring AS | Turkiye Is vs. CEO Event Medya |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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