Correlation Between MMC Sanayi and Merko Gida
Can any of the company-specific risk be diversified away by investing in both MMC Sanayi and Merko Gida 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 Merko Gida 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 Merko Gida Sanayi, you can compare the effects of market volatilities on MMC Sanayi and Merko Gida 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 Merko Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of MMC Sanayi and Merko Gida.
Diversification Opportunities for MMC Sanayi and Merko Gida
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MMC and Merko is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding MMC Sanayi ve and Merko Gida Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merko Gida Sanayi 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 Merko Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merko Gida Sanayi has no effect on the direction of MMC Sanayi i.e., MMC Sanayi and Merko Gida go up and down completely randomly.
Pair Corralation between MMC Sanayi and Merko Gida
Assuming the 90 days trading horizon MMC Sanayi ve is expected to under-perform the Merko Gida. But the stock apears to be less risky and, when comparing its historical volatility, MMC Sanayi ve is 1.1 times less risky than Merko Gida. The stock trades about -0.26 of its potential returns per unit of risk. The Merko Gida Sanayi is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,521 in Merko Gida Sanayi on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Merko Gida Sanayi or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MMC Sanayi ve vs. Merko Gida Sanayi
Performance |
| Timeline |
| MMC Sanayi ve |
| Merko Gida Sanayi |
MMC Sanayi and Merko Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MMC Sanayi and Merko Gida
The main advantage of trading using opposite MMC Sanayi and Merko Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MMC Sanayi position performs unexpectedly, Merko Gida 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 Merko Gida will offset losses from the drop in Merko Gida's long position.| MMC Sanayi vs. Bms Birlesik Metal | MMC Sanayi vs. Koza Anadolu Metal | MMC Sanayi vs. MEGA METAL | MMC Sanayi vs. Borlease Otomotiv AS |
| Merko Gida vs. E Data Teknoloji Pazarlama | Merko Gida vs. Bms Birlesik Metal | Merko Gida vs. Politeknik Metal Sanayi | Merko Gida vs. Koza Anadolu Metal |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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