Correlation Between MEGA METAL and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Koza Anadolu 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 Koza Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Koza Anadolu Metal, you can compare the effects of market volatilities on MEGA METAL and Koza Anadolu 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 Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Koza Anadolu.
Diversification Opportunities for MEGA METAL and Koza Anadolu
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MEGA and Koza is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Koza Anadolu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Anadolu Metal 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 Koza Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Anadolu Metal has no effect on the direction of MEGA METAL i.e., MEGA METAL and Koza Anadolu go up and down completely randomly.
Pair Corralation between MEGA METAL and Koza Anadolu
Assuming the 90 days trading horizon MEGA METAL is expected to generate 1.34 times less return on investment than Koza Anadolu. In addition to that, MEGA METAL is 1.43 times more volatile than Koza Anadolu Metal. It trades about 0.02 of its total potential returns per unit of risk. Koza Anadolu Metal is currently generating about 0.04 per unit of volatility. If you would invest 5,445 in Koza Anadolu Metal on August 28, 2024 and sell it today you would earn a total of 1,725 from holding Koza Anadolu Metal or generate 31.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 67.05% |
| Values | Daily Returns |
MEGA METAL vs. Koza Anadolu Metal
Performance |
| Timeline |
| MEGA METAL |
| Koza Anadolu Metal |
MEGA METAL and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Koza Anadolu
The main advantage of trading using opposite MEGA METAL and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Koza Anadolu 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 Koza Anadolu will offset losses from the drop in Koza Anadolu's long position.| MEGA METAL vs. Turkish Airlines | MEGA METAL vs. Koc Holding AS | MEGA METAL vs. Ford Otomotiv Sanayi | MEGA METAL vs. Turkiye Petrol Rafinerileri |
| Koza Anadolu vs. Qnb Finansbank AS | Koza Anadolu vs. QNB Finans Finansal | Koza Anadolu vs. Turkiye Kalkinma Bankasi | Koza Anadolu vs. Kocaer Celik Sanayi |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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