Correlation Between Ufuk Yatirim and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Ufuk Yatirim 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 Ufuk Yatirim and MEGA METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ufuk Yatirim Yonetim and MEGA METAL, you can compare the effects of market volatilities on Ufuk Yatirim 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 Ufuk Yatirim with a short position of MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ufuk Yatirim and MEGA METAL.
Diversification Opportunities for Ufuk Yatirim and MEGA METAL
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ufuk and MEGA is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ufuk Yatirim Yonetim and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Ufuk Yatirim 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 Ufuk Yatirim Yonetim 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 Ufuk Yatirim i.e., Ufuk Yatirim and MEGA METAL go up and down completely randomly.
Pair Corralation between Ufuk Yatirim and MEGA METAL
Assuming the 90 days trading horizon Ufuk Yatirim Yonetim is expected to generate 1.14 times more return on investment than MEGA METAL. However, Ufuk Yatirim is 1.14 times more volatile than MEGA METAL. It trades about 0.12 of its potential returns per unit of risk. MEGA METAL is currently generating about 0.02 per unit of risk. If you would invest 6,195 in Ufuk Yatirim Yonetim on October 11, 2024 and sell it today you would earn a total of 51,855 from holding Ufuk Yatirim Yonetim or generate 837.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 53.94% |
| Values | Daily Returns |
Ufuk Yatirim Yonetim vs. MEGA METAL
Performance |
| Timeline |
| Ufuk Yatirim Yonetim |
| MEGA METAL |
Ufuk Yatirim and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ufuk Yatirim and MEGA METAL
The main advantage of trading using opposite Ufuk Yatirim and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ufuk Yatirim 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.| Ufuk Yatirim vs. MEGA METAL | Ufuk Yatirim vs. Galatasaray Sportif Sinai | Ufuk Yatirim vs. Koza Anadolu Metal | Ufuk Yatirim vs. E Data Teknoloji Pazarlama |
| MEGA METAL vs. Cuhadaroglu Metal Sanayi | MEGA METAL vs. Mackolik Internet Hizmetleri | MEGA METAL vs. Trabzonspor Sportif Yatirim | MEGA METAL vs. Sekerbank TAS |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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