Correlation Between Netas Telekomunikasyon and Merko Gida
Can any of the company-specific risk be diversified away by investing in both Netas Telekomunikasyon 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 Netas Telekomunikasyon and Merko Gida into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netas Telekomunikasyon AS and Merko Gida Sanayi, you can compare the effects of market volatilities on Netas Telekomunikasyon 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 Netas Telekomunikasyon with a short position of Merko Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netas Telekomunikasyon and Merko Gida.
Diversification Opportunities for Netas Telekomunikasyon and Merko Gida
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Netas and Merko is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Netas Telekomunikasyon AS 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 Netas Telekomunikasyon 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 Netas Telekomunikasyon AS 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 Netas Telekomunikasyon i.e., Netas Telekomunikasyon and Merko Gida go up and down completely randomly.
Pair Corralation between Netas Telekomunikasyon and Merko Gida
Assuming the 90 days trading horizon Netas Telekomunikasyon is expected to generate 2.52 times less return on investment than Merko Gida. But when comparing it to its historical volatility, Netas Telekomunikasyon AS is 1.18 times less risky than Merko Gida. It trades about 0.02 of its potential returns per unit of risk. Merko Gida Sanayi is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,351 in Merko Gida Sanayi on August 30, 2024 and sell it today you would earn a total of 185.00 from holding Merko Gida Sanayi or generate 13.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netas Telekomunikasyon AS vs. Merko Gida Sanayi
Performance |
| Timeline |
| Netas Telekomunikasyon |
| Merko Gida Sanayi |
Netas Telekomunikasyon and Merko Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netas Telekomunikasyon and Merko Gida
The main advantage of trading using opposite Netas Telekomunikasyon and Merko Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netas Telekomunikasyon 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.| Netas Telekomunikasyon vs. Datagate Bilgisayar Malzemeleri | Netas Telekomunikasyon vs. MEGA METAL | Netas Telekomunikasyon vs. Creditwest Faktoring AS | Netas Telekomunikasyon vs. Sodas Sodyum Sanayi |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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