Correlation Between Cuhadaroglu Metal and Global Menkul
Can any of the company-specific risk be diversified away by investing in both Cuhadaroglu Metal and Global Menkul 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 Cuhadaroglu Metal and Global Menkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuhadaroglu Metal Sanayi and Global Menkul Degerler, you can compare the effects of market volatilities on Cuhadaroglu Metal and Global Menkul 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 Cuhadaroglu Metal with a short position of Global Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuhadaroglu Metal and Global Menkul.
Diversification Opportunities for Cuhadaroglu Metal and Global Menkul
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cuhadaroglu and Global is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Cuhadaroglu Metal Sanayi and Global Menkul Degerler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Menkul Degerler and Cuhadaroglu Metal 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 Cuhadaroglu Metal Sanayi are associated (or correlated) with Global Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Menkul Degerler has no effect on the direction of Cuhadaroglu Metal i.e., Cuhadaroglu Metal and Global Menkul go up and down completely randomly.
Pair Corralation between Cuhadaroglu Metal and Global Menkul
Assuming the 90 days trading horizon Cuhadaroglu Metal Sanayi is expected to generate 0.64 times more return on investment than Global Menkul. However, Cuhadaroglu Metal Sanayi is 1.57 times less risky than Global Menkul. It trades about 0.15 of its potential returns per unit of risk. Global Menkul Degerler is currently generating about 0.09 per unit of risk. If you would invest 2,130 in Cuhadaroglu Metal Sanayi on September 25, 2024 and sell it today you would earn a total of 550.00 from holding Cuhadaroglu Metal Sanayi or generate 25.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Cuhadaroglu Metal Sanayi vs. Global Menkul Degerler
Performance |
Timeline |
Cuhadaroglu Metal Sanayi |
Global Menkul Degerler |
Cuhadaroglu Metal and Global Menkul Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cuhadaroglu Metal and Global Menkul
The main advantage of trading using opposite Cuhadaroglu Metal and Global Menkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuhadaroglu Metal position performs unexpectedly, Global Menkul 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 Global Menkul will offset losses from the drop in Global Menkul's long position.Cuhadaroglu Metal vs. Gentas Genel Metal | Cuhadaroglu Metal vs. Trabzonspor Sportif Yatirim | Cuhadaroglu Metal vs. Koza Anadolu Metal | Cuhadaroglu Metal vs. Sodas Sodyum Sanayi |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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