Correlation Between Yunsa Yunlu and Margun Enerji
Can any of the company-specific risk be diversified away by investing in both Yunsa Yunlu 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 Yunsa Yunlu and Margun Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yunsa Yunlu Sanayi and Margun Enerji Uretim, you can compare the effects of market volatilities on Yunsa Yunlu 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 Yunsa Yunlu with a short position of Margun Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunsa Yunlu and Margun Enerji.
Diversification Opportunities for Yunsa Yunlu and Margun Enerji
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yunsa and Margun is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Yunsa Yunlu 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 Yunsa Yunlu 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 Yunsa Yunlu 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 Yunsa Yunlu i.e., Yunsa Yunlu and Margun Enerji go up and down completely randomly.
Pair Corralation between Yunsa Yunlu and Margun Enerji
Assuming the 90 days trading horizon Yunsa Yunlu Sanayi is expected to under-perform the Margun Enerji. But the stock apears to be less risky and, when comparing its historical volatility, Yunsa Yunlu Sanayi is 1.85 times less risky than Margun Enerji. The stock trades about -0.55 of its potential returns per unit of risk. The Margun Enerji Uretim is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,366 in Margun Enerji Uretim on November 28, 2024 and sell it today you would earn a total of 300.00 from holding Margun Enerji Uretim or generate 12.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Yunsa Yunlu Sanayi vs. Margun Enerji Uretim
Performance |
| Timeline |
| Yunsa Yunlu Sanayi |
| Margun Enerji Uretim |
Yunsa Yunlu and Margun Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunsa Yunlu and Margun Enerji
The main advantage of trading using opposite Yunsa Yunlu and Margun Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunsa Yunlu 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.| Yunsa Yunlu vs. Mackolik Internet Hizmetleri | Yunsa Yunlu vs. Sekerbank TAS | Yunsa Yunlu vs. Cuhadaroglu Metal Sanayi | Yunsa Yunlu vs. Koza Anadolu Metal |
| Margun Enerji vs. Qnb Finansbank AS | Margun Enerji vs. Silverline Endustri ve | Margun Enerji vs. E Data Teknoloji Pazarlama | 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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