Correlation Between MEGA METAL and Marmaris Altinyunus
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Marmaris Altinyunus 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 Marmaris Altinyunus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Marmaris Altinyunus Turistik, you can compare the effects of market volatilities on MEGA METAL and Marmaris Altinyunus 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 Marmaris Altinyunus. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Marmaris Altinyunus.
Diversification Opportunities for MEGA METAL and Marmaris Altinyunus
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MEGA and Marmaris is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Marmaris Altinyunus Turistik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marmaris Altinyunus 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 Marmaris Altinyunus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marmaris Altinyunus has no effect on the direction of MEGA METAL i.e., MEGA METAL and Marmaris Altinyunus go up and down completely randomly.
Pair Corralation between MEGA METAL and Marmaris Altinyunus
Assuming the 90 days trading horizon MEGA METAL is expected to generate 0.96 times more return on investment than Marmaris Altinyunus. However, MEGA METAL is 1.05 times less risky than Marmaris Altinyunus. It trades about 0.11 of its potential returns per unit of risk. Marmaris Altinyunus Turistik is currently generating about -0.23 per unit of risk. If you would invest 3,050 in MEGA METAL on September 4, 2024 and sell it today you would earn a total of 104.00 from holding MEGA METAL or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEGA METAL vs. Marmaris Altinyunus Turistik
Performance |
| Timeline |
| MEGA METAL |
| Marmaris Altinyunus |
MEGA METAL and Marmaris Altinyunus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Marmaris Altinyunus
The main advantage of trading using opposite MEGA METAL and Marmaris Altinyunus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Marmaris Altinyunus 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 Marmaris Altinyunus will offset losses from the drop in Marmaris Altinyunus' 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 |
| Marmaris Altinyunus vs. Cuhadaroglu Metal Sanayi | Marmaris Altinyunus vs. Koza Anadolu Metal | Marmaris Altinyunus vs. Sekerbank TAS | Marmaris Altinyunus vs. MEGA 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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