Correlation Between Ozak Gayrimenkul and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Ozak Gayrimenkul 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 Ozak Gayrimenkul and MEGA METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ozak Gayrimenkul Yatirim and MEGA METAL, you can compare the effects of market volatilities on Ozak Gayrimenkul 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 Ozak Gayrimenkul with a short position of MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ozak Gayrimenkul and MEGA METAL.
Diversification Opportunities for Ozak Gayrimenkul and MEGA METAL
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ozak and MEGA is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ozak Gayrimenkul Yatirim and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Ozak Gayrimenkul 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 Ozak Gayrimenkul Yatirim 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 Ozak Gayrimenkul i.e., Ozak Gayrimenkul and MEGA METAL go up and down completely randomly.
Pair Corralation between Ozak Gayrimenkul and MEGA METAL
Assuming the 90 days trading horizon Ozak Gayrimenkul Yatirim is expected to generate 0.6 times more return on investment than MEGA METAL. However, Ozak Gayrimenkul Yatirim is 1.66 times less risky than MEGA METAL. It trades about 0.09 of its potential returns per unit of risk. MEGA METAL is currently generating about 0.04 per unit of risk. If you would invest 753.00 in Ozak Gayrimenkul Yatirim on September 12, 2024 and sell it today you would earn a total of 485.00 from holding Ozak Gayrimenkul Yatirim or generate 64.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Ozak Gayrimenkul Yatirim vs. MEGA METAL
Performance |
| Timeline |
| Ozak Gayrimenkul Yatirim |
| MEGA METAL |
Ozak Gayrimenkul and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ozak Gayrimenkul and MEGA METAL
The main advantage of trading using opposite Ozak Gayrimenkul and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ozak Gayrimenkul 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.| Ozak Gayrimenkul vs. MEGA METAL | Ozak Gayrimenkul vs. Koza Anadolu Metal | Ozak Gayrimenkul vs. Bms Birlesik Metal | Ozak Gayrimenkul vs. Akbank TAS |
| MEGA METAL vs. Bms Birlesik Metal | MEGA METAL vs. Koza Anadolu Metal | MEGA METAL vs. Politeknik Metal Sanayi | MEGA METAL vs. Gentas Genel 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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