Correlation Between MMC Sanayi and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both MMC Sanayi and MEGA METAL 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 MEGA METAL 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 MEGA METAL, you can compare the effects of market volatilities on MMC Sanayi and MEGA METAL 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 MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MMC Sanayi and MEGA METAL.
Diversification Opportunities for MMC Sanayi and MEGA METAL
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MMC and MEGA is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding MMC Sanayi ve and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL 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 MEGA METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEGA METAL has no effect on the direction of MMC Sanayi i.e., MMC Sanayi and MEGA METAL go up and down completely randomly.
Pair Corralation between MMC Sanayi and MEGA METAL
Assuming the 90 days trading horizon MMC Sanayi ve is expected to generate 1.17 times more return on investment than MEGA METAL. However, MMC Sanayi is 1.17 times more volatile than MEGA METAL. It trades about 0.07 of its potential returns per unit of risk. MEGA METAL is currently generating about 0.02 per unit of risk. If you would invest 617.00 in MMC Sanayi ve on September 13, 2024 and sell it today you would earn a total of 1,433 from holding MMC Sanayi ve or generate 232.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 49.9% |
| Values | Daily Returns |
MMC Sanayi ve vs. MEGA METAL
Performance |
| Timeline |
| MMC Sanayi ve |
| MEGA METAL |
MMC Sanayi and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MMC Sanayi and MEGA METAL
The main advantage of trading using opposite MMC Sanayi and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MMC Sanayi position performs unexpectedly, MEGA METAL 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 MEGA METAL will offset losses from the drop in MEGA METAL's long position.| MMC Sanayi vs. Koza Anadolu Metal | MMC Sanayi vs. ICBC Turkey Bank | MMC Sanayi vs. Cuhadaroglu Metal Sanayi | MMC Sanayi vs. Gentas Genel Metal |
| MEGA METAL vs. SASA Polyester Sanayi | MEGA METAL vs. Turkish Airlines | MEGA METAL vs. Koc Holding AS | MEGA METAL vs. Ford Otomotiv 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |