Correlation Between Sodas Sodyum and Margun Enerji
Can any of the company-specific risk be diversified away by investing in both Sodas Sodyum and Margun Enerji 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 Sodas Sodyum and Margun Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sodas Sodyum Sanayi and Margun Enerji Uretim, you can compare the effects of market volatilities on Sodas Sodyum and Margun Enerji 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 Sodas Sodyum with a short position of Margun Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sodas Sodyum and Margun Enerji.
Diversification Opportunities for Sodas Sodyum and Margun Enerji
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sodas and Margun is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sodas Sodyum Sanayi and Margun Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Margun Enerji Uretim and Sodas Sodyum 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 Sodas Sodyum Sanayi are associated (or correlated) with Margun Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Margun Enerji Uretim has no effect on the direction of Sodas Sodyum i.e., Sodas Sodyum and Margun Enerji go up and down completely randomly.
Pair Corralation between Sodas Sodyum and Margun Enerji
Assuming the 90 days trading horizon Sodas Sodyum Sanayi is expected to under-perform the Margun Enerji. In addition to that, Sodas Sodyum is 1.36 times more volatile than Margun Enerji Uretim. It trades about -0.27 of its total potential returns per unit of risk. Margun Enerji Uretim is currently generating about -0.27 per unit of volatility. If you would invest 2,074 in Margun Enerji Uretim on August 31, 2024 and sell it today you would lose (174.00) from holding Margun Enerji Uretim or give up 8.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sodas Sodyum Sanayi vs. Margun Enerji Uretim
Performance |
| Timeline |
| Sodas Sodyum Sanayi |
| Margun Enerji Uretim |
Sodas Sodyum and Margun Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sodas Sodyum and Margun Enerji
The main advantage of trading using opposite Sodas Sodyum and Margun Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sodas Sodyum position performs unexpectedly, Margun Enerji 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 Margun Enerji will offset losses from the drop in Margun Enerji's long position.| Sodas Sodyum vs. Akbank TAS | Sodas Sodyum vs. Politeknik Metal Sanayi | Sodas Sodyum vs. Bms Birlesik Metal | Sodas Sodyum vs. Koza Anadolu Metal |
| Margun Enerji vs. Galatasaray Sportif Sinai | Margun Enerji vs. Bms Birlesik Metal | Margun Enerji vs. MEGA METAL | Margun Enerji vs. Politeknik Metal 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 CEOs Directory module to screen CEOs from public companies around the world.
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