Correlation Between MEGA METAL and Viking Kagit
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Viking Kagit 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 Viking Kagit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Viking Kagit ve, you can compare the effects of market volatilities on MEGA METAL and Viking Kagit 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 Viking Kagit. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Viking Kagit.
Diversification Opportunities for MEGA METAL and Viking Kagit
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MEGA and Viking is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Viking Kagit ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Kagit ve 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 Viking Kagit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Kagit ve has no effect on the direction of MEGA METAL i.e., MEGA METAL and Viking Kagit go up and down completely randomly.
Pair Corralation between MEGA METAL and Viking Kagit
Assuming the 90 days trading horizon MEGA METAL is expected to generate 1.22 times less return on investment than Viking Kagit. In addition to that, MEGA METAL is 1.06 times more volatile than Viking Kagit ve. It trades about 0.02 of its total potential returns per unit of risk. Viking Kagit ve is currently generating about 0.03 per unit of volatility. If you would invest 2,622 in Viking Kagit ve on September 4, 2024 and sell it today you would earn a total of 270.00 from holding Viking Kagit ve or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.77% |
| Values | Daily Returns |
MEGA METAL vs. Viking Kagit ve
Performance |
| Timeline |
| MEGA METAL |
| Viking Kagit ve |
MEGA METAL and Viking Kagit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Viking Kagit
The main advantage of trading using opposite MEGA METAL and Viking Kagit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Viking Kagit 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 Viking Kagit will offset losses from the drop in Viking Kagit's long position.| MEGA METAL vs. Akbank TAS | MEGA METAL vs. Politeknik Metal Sanayi | MEGA METAL vs. Koza Anadolu Metal | MEGA METAL vs. E Data Teknoloji Pazarlama |
| Viking Kagit vs. Gentas Genel Metal | Viking Kagit vs. MEGA METAL | Viking Kagit vs. Cuhadaroglu Metal Sanayi | Viking Kagit vs. Akcansa Cimento Sanayi |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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