Correlation Between Sekerbank TAS and MMC Sanayi
Can any of the company-specific risk be diversified away by investing in both Sekerbank TAS and MMC Sanayi 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 Sekerbank TAS and MMC Sanayi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sekerbank TAS and MMC Sanayi ve, you can compare the effects of market volatilities on Sekerbank TAS and MMC Sanayi 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 Sekerbank TAS with a short position of MMC Sanayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekerbank TAS and MMC Sanayi.
Diversification Opportunities for Sekerbank TAS and MMC Sanayi
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sekerbank and MMC is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS and MMC Sanayi ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMC Sanayi ve and Sekerbank TAS 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 Sekerbank TAS are associated (or correlated) with MMC Sanayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMC Sanayi ve has no effect on the direction of Sekerbank TAS i.e., Sekerbank TAS and MMC Sanayi go up and down completely randomly.
Pair Corralation between Sekerbank TAS and MMC Sanayi
Assuming the 90 days trading horizon Sekerbank TAS is expected to generate 0.73 times more return on investment than MMC Sanayi. However, Sekerbank TAS is 1.37 times less risky than MMC Sanayi. It trades about 0.22 of its potential returns per unit of risk. MMC Sanayi ve is currently generating about -0.17 per unit of risk. If you would invest 414.00 in Sekerbank TAS on August 31, 2024 and sell it today you would earn a total of 53.00 from holding Sekerbank TAS or generate 12.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sekerbank TAS vs. MMC Sanayi ve
Performance |
| Timeline |
| Sekerbank TAS |
| MMC Sanayi ve |
Sekerbank TAS and MMC Sanayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sekerbank TAS and MMC Sanayi
The main advantage of trading using opposite Sekerbank TAS and MMC Sanayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekerbank TAS position performs unexpectedly, MMC Sanayi 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 MMC Sanayi will offset losses from the drop in MMC Sanayi's long position.| Sekerbank TAS vs. Turkiye Sinai Kalkinma | Sekerbank TAS vs. Yapi ve Kredi | Sekerbank TAS vs. Kardemir Karabuk Demir | Sekerbank TAS vs. Turkiye Is Bankasi |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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