Correlation Between MEGA METAL and Temapol Polimer
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Temapol Polimer 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 Temapol Polimer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Temapol Polimer Plastik, you can compare the effects of market volatilities on MEGA METAL and Temapol Polimer 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 Temapol Polimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Temapol Polimer.
Diversification Opportunities for MEGA METAL and Temapol Polimer
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between MEGA and Temapol is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Temapol Polimer Plastik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Temapol Polimer Plastik 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 Temapol Polimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Temapol Polimer Plastik has no effect on the direction of MEGA METAL i.e., MEGA METAL and Temapol Polimer go up and down completely randomly.
Pair Corralation between MEGA METAL and Temapol Polimer
Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Temapol Polimer. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 2.67 times less risky than Temapol Polimer. The stock trades about -0.49 of its potential returns per unit of risk. The Temapol Polimer Plastik is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 7,240 in Temapol Polimer Plastik on October 25, 2024 and sell it today you would earn a total of 790.00 from holding Temapol Polimer Plastik or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MEGA METAL vs. Temapol Polimer Plastik
Performance |
| Timeline |
| MEGA METAL |
| Temapol Polimer Plastik |
MEGA METAL and Temapol Polimer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Temapol Polimer
The main advantage of trading using opposite MEGA METAL and Temapol Polimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Temapol Polimer 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 Temapol Polimer will offset losses from the drop in Temapol Polimer'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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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