Correlation Between MEGA METAL and Yesil Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Yesil 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 Yesil 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 Yesil Gayrimenkul Yatirim, you can compare the effects of market volatilities on MEGA METAL and Yesil 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 Yesil Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Yesil Gayrimenkul.
Diversification Opportunities for MEGA METAL and Yesil Gayrimenkul
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MEGA and Yesil is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Yesil Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil 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 Yesil Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Gayrimenkul Yatirim has no effect on the direction of MEGA METAL i.e., MEGA METAL and Yesil Gayrimenkul go up and down completely randomly.
Pair Corralation between MEGA METAL and Yesil Gayrimenkul
Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Yesil Gayrimenkul. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 1.88 times less risky than Yesil Gayrimenkul. The stock trades about -0.05 of its potential returns per unit of risk. The Yesil Gayrimenkul Yatirim is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 781.00 in Yesil Gayrimenkul Yatirim on September 12, 2024 and sell it today you would earn a total of 249.00 from holding Yesil Gayrimenkul Yatirim or generate 31.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
MEGA METAL vs. Yesil Gayrimenkul Yatirim
Performance |
| Timeline |
| MEGA METAL |
| Yesil Gayrimenkul Yatirim |
MEGA METAL and Yesil Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEGA METAL and Yesil Gayrimenkul
The main advantage of trading using opposite MEGA METAL and Yesil Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Yesil 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 Yesil Gayrimenkul will offset losses from the drop in Yesil 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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