Correlation Between MEGA METAL and Prizma Pres
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Prizma Pres 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 Prizma Pres into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Prizma Pres Matbaacilik, you can compare the effects of market volatilities on MEGA METAL and Prizma Pres 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 Prizma Pres. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Prizma Pres.
Diversification Opportunities for MEGA METAL and Prizma Pres
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MEGA and Prizma is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Prizma Pres Matbaacilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prizma Pres Matbaacilik 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 Prizma Pres. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prizma Pres Matbaacilik has no effect on the direction of MEGA METAL i.e., MEGA METAL and Prizma Pres go up and down completely randomly.
Pair Corralation between MEGA METAL and Prizma Pres
Assuming the 90 days trading horizon MEGA METAL is expected to generate 0.6 times more return on investment than Prizma Pres. However, MEGA METAL is 1.66 times less risky than Prizma Pres. It trades about 0.02 of its potential returns per unit of risk. Prizma Pres Matbaacilik is currently generating about -0.14 per unit of risk. If you would invest 3,060 in MEGA METAL on August 26, 2024 and sell it today you would earn a total of 12.00 from holding MEGA METAL or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEGA METAL vs. Prizma Pres Matbaacilik
Performance |
| Timeline |
| MEGA METAL |
| Prizma Pres Matbaacilik |
MEGA METAL and Prizma Pres Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Prizma Pres
The main advantage of trading using opposite MEGA METAL and Prizma Pres positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Prizma Pres 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 Prizma Pres will offset losses from the drop in Prizma Pres' 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 |
| Prizma Pres vs. Politeknik Metal Sanayi | Prizma Pres vs. MEGA METAL | Prizma Pres vs. Turkish Airlines | Prizma Pres vs. Trabzonspor Sportif Yatirim |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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