Correlation Between Yukselen Celik and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Yukselen Celik 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 Yukselen Celik and MEGA METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yukselen Celik As and MEGA METAL, you can compare the effects of market volatilities on Yukselen Celik 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 Yukselen Celik with a short position of MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yukselen Celik and MEGA METAL.
Diversification Opportunities for Yukselen Celik and MEGA METAL
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yukselen and MEGA is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Yukselen Celik As and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Yukselen Celik 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 Yukselen Celik As 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 Yukselen Celik i.e., Yukselen Celik and MEGA METAL go up and down completely randomly.
Pair Corralation between Yukselen Celik and MEGA METAL
Assuming the 90 days trading horizon Yukselen Celik is expected to generate 13.74 times less return on investment than MEGA METAL. In addition to that, Yukselen Celik is 1.33 times more volatile than MEGA METAL. It trades about 0.01 of its total potential returns per unit of risk. MEGA METAL is currently generating about 0.13 per unit of volatility. If you would invest 2,924 in MEGA METAL on August 24, 2024 and sell it today you would earn a total of 148.00 from holding MEGA METAL or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yukselen Celik As vs. MEGA METAL
Performance |
| Timeline |
| Yukselen Celik As |
| MEGA METAL |
Yukselen Celik and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yukselen Celik and MEGA METAL
The main advantage of trading using opposite Yukselen Celik and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yukselen Celik 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.| Yukselen Celik vs. MEGA METAL | Yukselen Celik vs. Bms Birlesik Metal | Yukselen Celik vs. Gentas Genel Metal | Yukselen Celik vs. Turkiye Kalkinma Bankasi |
| MEGA METAL vs. Gentas Genel Metal | MEGA METAL vs. Politeknik Metal Sanayi | MEGA METAL vs. Koza Anadolu Metal | MEGA METAL vs. Bms Birlesik 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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