Correlation Between DO AG and Mackolik Internet

Can any of the company-specific risk be diversified away by investing in both DO AG and Mackolik Internet 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 DO AG and Mackolik Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DO AG and Mackolik Internet Hizmetleri, you can compare the effects of market volatilities on DO AG and Mackolik Internet 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 DO AG with a short position of Mackolik Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO AG and Mackolik Internet.

Diversification Opportunities for DO AG and Mackolik Internet

0.84

Correlation Coefficient

DO AG  Mackolik Internet

Very poor diversification

The 3 months correlation between DOCO and Mackolik is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding DO AG and Mackolik Internet Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackolik Internet and DO AG 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 DO AG are associated (or correlated) with Mackolik Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackolik Internet has no effect on the direction of DO AG i.e., DO AG and Mackolik Internet go up and down completely randomly.

Pair Corralation between DO AG and Mackolik Internet

Assuming the 90 days trading horizon DO AG is expected to generate 1.35 times less return on investment than Mackolik Internet. But when comparing it to its historical volatility, DO AG is 1.57 times less risky than Mackolik Internet. It trades about 0.3 of its potential returns per unit of risk. Mackolik Internet Hizmetleri is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  9,350  in Mackolik Internet Hizmetleri on September 22, 2024 and sell it today you would earn a total of  1,320  from holding Mackolik Internet Hizmetleri or generate 14.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	95.65%
Values	Daily Returns

DO AG  vs.  Mackolik Internet Hizmetleri

DO AG

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DO AG are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, DO AG unveiled solid returns over the last few months and may actually be approaching a breakup point.

Mackolik Internet

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mackolik Internet Hizmetleri are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Mackolik Internet demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DO AG and Mackolik Internet

The main advantage of trading using opposite DO AG and Mackolik Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO AG position performs unexpectedly, Mackolik Internet 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 Mackolik Internet will offset losses from the drop in Mackolik Internet's long position.

The idea behind DO AG and Mackolik Internet Hizmetleri pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.