Correlation Between MEGA METAL and Senkron Guvenlik

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

By analyzing existing cross correlation between MEGA METAL and Senkron Guvenlik ve, you can compare the effects of market volatilities on MEGA METAL and Senkron Guvenlik 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 Senkron Guvenlik. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Senkron Guvenlik.

Diversification Opportunities for MEGA METAL and Senkron Guvenlik

0.61

Correlation Coefficient

MEGA METAL  Senkron Guvenlik

Poor diversification

The 3 months correlation between MEGA and Senkron is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Senkron Guvenlik ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senkron Guvenlik 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 Senkron Guvenlik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senkron Guvenlik has no effect on the direction of MEGA METAL i.e., MEGA METAL and Senkron Guvenlik go up and down completely randomly.

Pair Corralation between MEGA METAL and Senkron Guvenlik

Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Senkron Guvenlik. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 1.32 times less risky than Senkron Guvenlik. The stock trades about -0.08 of its potential returns per unit of risk. The Senkron Guvenlik ve is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  5,620  in Senkron Guvenlik ve on September 22, 2024 and sell it today you would lose (550.00) from holding Senkron Guvenlik ve or give up 9.79% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

MEGA METAL  vs.  Senkron Guvenlik ve

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.

Senkron Guvenlik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Senkron Guvenlik ve has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent 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.

Pair Trading with MEGA METAL and Senkron Guvenlik

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

The idea behind MEGA METAL and Senkron Guvenlik ve 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.