Correlation Between MMC Sanayi and CEO Event
Can any of the company-specific risk be diversified away by investing in both MMC Sanayi and CEO Event 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 MMC Sanayi and CEO Event into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MMC Sanayi ve and CEO Event Medya, you can compare the effects of market volatilities on MMC Sanayi and CEO Event 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 MMC Sanayi with a short position of CEO Event. Check out your portfolio center. Please also check ongoing floating volatility patterns of MMC Sanayi and CEO Event.
Diversification Opportunities for MMC Sanayi and CEO Event
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MMC and CEO is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding MMC Sanayi ve and CEO Event Medya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Event Medya and MMC Sanayi 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 MMC Sanayi ve are associated (or correlated) with CEO Event. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Event Medya has no effect on the direction of MMC Sanayi i.e., MMC Sanayi and CEO Event go up and down completely randomly.
Pair Corralation between MMC Sanayi and CEO Event
Assuming the 90 days trading horizon MMC Sanayi ve is expected to generate 0.56 times more return on investment than CEO Event. However, MMC Sanayi ve is 1.78 times less risky than CEO Event. It trades about -0.17 of its potential returns per unit of risk. CEO Event Medya is currently generating about -0.51 per unit of risk. If you would invest 2,332 in MMC Sanayi ve on August 31, 2024 and sell it today you would lose (332.00) from holding MMC Sanayi ve or give up 14.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
MMC Sanayi ve vs. CEO Event Medya
Performance |
| Timeline |
| MMC Sanayi ve |
| CEO Event Medya |
MMC Sanayi and CEO Event Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MMC Sanayi and CEO Event
The main advantage of trading using opposite MMC Sanayi and CEO Event positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MMC Sanayi position performs unexpectedly, CEO Event 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 CEO Event will offset losses from the drop in CEO Event's long position.| MMC Sanayi vs. Qnb Finansbank AS | MMC Sanayi vs. Gentas Genel Metal | MMC Sanayi vs. Trabzonspor Sportif Yatirim | MMC Sanayi vs. E Data Teknoloji Pazarlama |
| CEO Event vs. Brisa Bridgestone Sabanci | CEO Event vs. Dogus Gayrimenkul Yatirim | CEO Event vs. IZDEMIR Enerji Elektrik | CEO Event vs. Logo Yazilim 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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