Correlation Between MEGA METAL and Marka Yatirim

Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Marka Yatirim 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 MEGA METAL and Marka Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MEGA METAL and Marka Yatirim Holding, you can compare the effects of market volatilities on MEGA METAL and Marka Yatirim 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 MEGA METAL with a short position of Marka Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Marka Yatirim.

Diversification Opportunities for MEGA METAL and Marka Yatirim

-0.27

Correlation Coefficient

MEGA METAL  Marka Yatirim

Very good diversification

The 3 months correlation between MEGA and Marka is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Marka Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marka Yatirim Holding and MEGA 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 MEGA METAL are associated (or correlated) with Marka Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marka Yatirim Holding has no effect on the direction of MEGA METAL i.e., MEGA METAL and Marka Yatirim go up and down completely randomly.

Pair Corralation between MEGA METAL and Marka Yatirim

Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Marka Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 2.3 times less risky than Marka Yatirim. The stock trades about -0.07 of its potential returns per unit of risk. The Marka Yatirim Holding is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  5,670  in Marka Yatirim Holding on September 13, 2024 and sell it today you would lose (70.00) from holding Marka Yatirim Holding or give up 1.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MEGA METAL  vs.  Marka Yatirim Holding

MEGA METAL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MEGA METAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Marka Yatirim Holding

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Marka Yatirim Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Marka Yatirim is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with MEGA METAL and Marka Yatirim

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

The idea behind MEGA METAL and Marka Yatirim Holding 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.

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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.