Correlation Between MEGA METAL and Verusaturk Girisim
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Verusaturk Girisim 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 Verusaturk Girisim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Verusaturk Girisim Sermayesi, you can compare the effects of market volatilities on MEGA METAL and Verusaturk Girisim 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 Verusaturk Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Verusaturk Girisim.
Diversification Opportunities for MEGA METAL and Verusaturk Girisim
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MEGA and Verusaturk is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Verusaturk Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verusaturk Girisim 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 Verusaturk Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verusaturk Girisim has no effect on the direction of MEGA METAL i.e., MEGA METAL and Verusaturk Girisim go up and down completely randomly.
Pair Corralation between MEGA METAL and Verusaturk Girisim
Assuming the 90 days trading horizon MEGA METAL is expected to generate 1.01 times less return on investment than Verusaturk Girisim. In addition to that, MEGA METAL is 1.25 times more volatile than Verusaturk Girisim Sermayesi. It trades about 0.07 of its total potential returns per unit of risk. Verusaturk Girisim Sermayesi is currently generating about 0.09 per unit of volatility. If you would invest 3,743 in Verusaturk Girisim Sermayesi on September 13, 2024 and sell it today you would earn a total of 107.00 from holding Verusaturk Girisim Sermayesi or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEGA METAL vs. Verusaturk Girisim Sermayesi
Performance |
| Timeline |
| MEGA METAL |
| Verusaturk Girisim |
MEGA METAL and Verusaturk Girisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Verusaturk Girisim
The main advantage of trading using opposite MEGA METAL and Verusaturk Girisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Verusaturk Girisim 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 Verusaturk Girisim will offset losses from the drop in Verusaturk Girisim'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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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