Correlation Between MEGA METAL and Seker Finansal
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Seker Finansal 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 Seker Finansal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Seker Finansal Kiralama, you can compare the effects of market volatilities on MEGA METAL and Seker Finansal 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 Seker Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Seker Finansal.
Diversification Opportunities for MEGA METAL and Seker Finansal
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MEGA and Seker is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Seker Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seker Finansal Kiralama 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 Seker Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seker Finansal Kiralama has no effect on the direction of MEGA METAL i.e., MEGA METAL and Seker Finansal go up and down completely randomly.
Pair Corralation between MEGA METAL and Seker Finansal
Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Seker Finansal. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 2.13 times less risky than Seker Finansal. The stock trades about -0.53 of its potential returns per unit of risk. The Seker Finansal Kiralama is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 735.00 in Seker Finansal Kiralama on November 22, 2024 and sell it today you would lose (35.00) from holding Seker Finansal Kiralama or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEGA METAL vs. Seker Finansal Kiralama
Performance |
| Timeline |
| MEGA METAL |
| Seker Finansal Kiralama |
MEGA METAL and Seker Finansal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Seker Finansal
The main advantage of trading using opposite MEGA METAL and Seker Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Seker Finansal 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 Seker Finansal will offset losses from the drop in Seker Finansal's long position.| MEGA METAL vs. Silverline Endustri ve | MEGA METAL vs. Politeknik Metal Sanayi | MEGA METAL vs. Turkish Airlines | MEGA METAL vs. Cuhadaroglu Metal Sanayi |
| Seker Finansal vs. Gentas Genel Metal | Seker Finansal vs. MEGA METAL | Seker Finansal vs. Koza Anadolu Metal | Seker Finansal vs. Akbank TAS |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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