Correlation Between Yeni Gimat and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Yeni Gimat 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 Yeni Gimat and MEGA METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yeni Gimat Gayrimenkul and MEGA METAL, you can compare the effects of market volatilities on Yeni Gimat 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 Yeni Gimat with a short position of MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yeni Gimat and MEGA METAL.
Diversification Opportunities for Yeni Gimat and MEGA METAL
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yeni and MEGA is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Yeni Gimat Gayrimenkul and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Yeni Gimat 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 Yeni Gimat Gayrimenkul 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 Yeni Gimat i.e., Yeni Gimat and MEGA METAL go up and down completely randomly.
Pair Corralation between Yeni Gimat and MEGA METAL
Assuming the 90 days trading horizon Yeni Gimat Gayrimenkul is expected to generate 1.29 times more return on investment than MEGA METAL. However, Yeni Gimat is 1.29 times more volatile than MEGA METAL. It trades about 0.27 of its potential returns per unit of risk. MEGA METAL is currently generating about 0.11 per unit of risk. If you would invest 5,460 in Yeni Gimat Gayrimenkul on September 4, 2024 and sell it today you would earn a total of 660.00 from holding Yeni Gimat Gayrimenkul or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yeni Gimat Gayrimenkul vs. MEGA METAL
Performance |
| Timeline |
| Yeni Gimat Gayrimenkul |
| MEGA METAL |
Yeni Gimat and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yeni Gimat and MEGA METAL
The main advantage of trading using opposite Yeni Gimat and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yeni Gimat 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.| Yeni Gimat vs. Bms Birlesik Metal | Yeni Gimat vs. Datagate Bilgisayar Malzemeleri | Yeni Gimat vs. Qnb Finansbank AS | Yeni Gimat vs. MEGA METAL |
| MEGA METAL vs. Akbank TAS | MEGA METAL vs. Politeknik Metal Sanayi | MEGA METAL vs. Koza Anadolu Metal | MEGA METAL vs. E Data Teknoloji Pazarlama |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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