Correlation Between MEGA METAL and Ideal Finansal
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Ideal 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 Ideal 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 Ideal Finansal Teknolojiler, you can compare the effects of market volatilities on MEGA METAL and Ideal 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 Ideal Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Ideal Finansal.
Diversification Opportunities for MEGA METAL and Ideal Finansal
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between MEGA and Ideal is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Ideal Finansal Teknolojiler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ideal Finansal Tekno 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 Ideal Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ideal Finansal Tekno has no effect on the direction of MEGA METAL i.e., MEGA METAL and Ideal Finansal go up and down completely randomly.
Pair Corralation between MEGA METAL and Ideal Finansal
Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Ideal Finansal. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 2.7 times less risky than Ideal Finansal. The stock trades about -0.59 of its potential returns per unit of risk. The Ideal Finansal Teknolojiler is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 12,090 in Ideal Finansal Teknolojiler on November 28, 2024 and sell it today you would earn a total of 280.00 from holding Ideal Finansal Teknolojiler or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEGA METAL vs. Ideal Finansal Teknolojiler
Performance |
| Timeline |
| MEGA METAL |
| Ideal Finansal Tekno |
MEGA METAL and Ideal Finansal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Ideal Finansal
The main advantage of trading using opposite MEGA METAL and Ideal Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Ideal 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 Ideal Finansal will offset losses from the drop in Ideal Finansal's long position.| MEGA METAL vs. Bms Birlesik Metal | MEGA METAL vs. Sekerbank TAS | MEGA METAL vs. Akcansa Cimento Sanayi | MEGA METAL vs. Creditwest Faktoring AS |
| Ideal Finansal vs. Gentas Genel Metal | Ideal Finansal vs. KOC METALURJI | Ideal Finansal vs. Borlease Otomotiv AS | Ideal Finansal vs. Bms Birlesik 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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