Correlation Between MEGA METAL and Unlu Yatirim
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Unlu Yatirim 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 Unlu Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Unlu Yatirim Holding, you can compare the effects of market volatilities on MEGA METAL and Unlu Yatirim 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 Unlu Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Unlu Yatirim.
Diversification Opportunities for MEGA METAL and Unlu Yatirim
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MEGA and Unlu is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Unlu Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unlu Yatirim Holding 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 Unlu Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unlu Yatirim Holding has no effect on the direction of MEGA METAL i.e., MEGA METAL and Unlu Yatirim go up and down completely randomly.
Pair Corralation between MEGA METAL and Unlu Yatirim
Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Unlu Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 1.52 times less risky than Unlu Yatirim. The stock trades about -0.5 of its potential returns per unit of risk. The Unlu Yatirim Holding is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 1,494 in Unlu Yatirim Holding on November 2, 2024 and sell it today you would lose (60.00) from holding Unlu Yatirim Holding or give up 4.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
MEGA METAL vs. Unlu Yatirim Holding
Performance |
| Timeline |
| MEGA METAL |
| Unlu Yatirim Holding |
MEGA METAL and Unlu Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Unlu Yatirim
The main advantage of trading using opposite MEGA METAL and Unlu Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Unlu Yatirim 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 Unlu Yatirim will offset losses from the drop in Unlu Yatirim's long position.| MEGA METAL vs. Koza Anadolu Metal | MEGA METAL vs. Akcansa Cimento Sanayi | MEGA METAL vs. Politeknik Metal Sanayi | MEGA METAL vs. Bms Birlesik Metal |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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