Correlation Between MEGA METAL and Nigbas Nigde
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Nigbas Nigde 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 Nigbas Nigde into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Nigbas Nigde Beton, you can compare the effects of market volatilities on MEGA METAL and Nigbas Nigde 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 Nigbas Nigde. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Nigbas Nigde.
Diversification Opportunities for MEGA METAL and Nigbas Nigde
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MEGA and Nigbas is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Nigbas Nigde Beton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nigbas Nigde Beton 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 Nigbas Nigde. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nigbas Nigde Beton has no effect on the direction of MEGA METAL i.e., MEGA METAL and Nigbas Nigde go up and down completely randomly.
Pair Corralation between MEGA METAL and Nigbas Nigde
Assuming the 90 days trading horizon MEGA METAL is expected to generate 0.6 times more return on investment than Nigbas Nigde. However, MEGA METAL is 1.68 times less risky than Nigbas Nigde. It trades about -0.05 of its potential returns per unit of risk. Nigbas Nigde Beton is currently generating about -0.06 per unit of risk. If you would invest 3,170 in MEGA METAL on August 30, 2024 and sell it today you would lose (70.00) from holding MEGA METAL or give up 2.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEGA METAL vs. Nigbas Nigde Beton
Performance |
| Timeline |
| MEGA METAL |
| Nigbas Nigde Beton |
MEGA METAL and Nigbas Nigde Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Nigbas Nigde
The main advantage of trading using opposite MEGA METAL and Nigbas Nigde positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Nigbas Nigde 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 Nigbas Nigde will offset losses from the drop in Nigbas Nigde's long position.| MEGA METAL vs. Datagate Bilgisayar Malzemeleri | MEGA METAL vs. Koza Anadolu Metal | MEGA METAL vs. Politeknik Metal Sanayi | MEGA METAL vs. Akbank TAS |
| Nigbas Nigde vs. Qnb Finansbank AS | Nigbas Nigde vs. Gentas Genel Metal | Nigbas Nigde vs. Mackolik Internet Hizmetleri | Nigbas Nigde 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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