Correlation Between MEGA METAL and Trend Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Trend Gayrimenkul 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 Trend Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Trend Gayrimenkul Yatirim, you can compare the effects of market volatilities on MEGA METAL and Trend Gayrimenkul 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 Trend Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Trend Gayrimenkul.
Diversification Opportunities for MEGA METAL and Trend Gayrimenkul
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MEGA and Trend is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Trend Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend Gayrimenkul Yatirim 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 Trend Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Gayrimenkul Yatirim has no effect on the direction of MEGA METAL i.e., MEGA METAL and Trend Gayrimenkul go up and down completely randomly.
Pair Corralation between MEGA METAL and Trend Gayrimenkul
Assuming the 90 days trading horizon MEGA METAL is expected to generate 0.59 times more return on investment than Trend Gayrimenkul. However, MEGA METAL is 1.7 times less risky than Trend Gayrimenkul. It trades about 0.18 of its potential returns per unit of risk. Trend Gayrimenkul Yatirim is currently generating about -0.14 per unit of risk. If you would invest 3,134 in MEGA METAL on September 15, 2024 and sell it today you would earn a total of 258.00 from holding MEGA METAL or generate 8.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEGA METAL vs. Trend Gayrimenkul Yatirim
Performance |
| Timeline |
| MEGA METAL |
| Trend Gayrimenkul Yatirim |
MEGA METAL and Trend Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Trend Gayrimenkul
The main advantage of trading using opposite MEGA METAL and Trend Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Trend Gayrimenkul 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 Trend Gayrimenkul will offset losses from the drop in Trend Gayrimenkul's long position.| MEGA METAL vs. SASA Polyester Sanayi | MEGA METAL vs. Turkish Airlines | MEGA METAL vs. Koc Holding AS | MEGA METAL vs. Ford Otomotiv Sanayi |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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