Correlation Between MEGA METAL and Yaprak Sut
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Yaprak Sut 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 Yaprak Sut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Yaprak Sut ve, you can compare the effects of market volatilities on MEGA METAL and Yaprak Sut 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 Yaprak Sut. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Yaprak Sut.
Diversification Opportunities for MEGA METAL and Yaprak Sut
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MEGA and Yaprak is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Yaprak Sut ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yaprak Sut ve 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 Yaprak Sut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yaprak Sut ve has no effect on the direction of MEGA METAL i.e., MEGA METAL and Yaprak Sut go up and down completely randomly.
Pair Corralation between MEGA METAL and Yaprak Sut
Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Yaprak Sut. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 1.66 times less risky than Yaprak Sut. The stock trades about -0.02 of its potential returns per unit of risk. The Yaprak Sut ve is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 39,925 in Yaprak Sut ve on September 26, 2024 and sell it today you would earn a total of 16,925 from holding Yaprak Sut ve or generate 42.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
MEGA METAL vs. Yaprak Sut ve
Performance |
Timeline |
MEGA METAL |
Yaprak Sut ve |
MEGA METAL and Yaprak Sut Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MEGA METAL and Yaprak Sut
The main advantage of trading using opposite MEGA METAL and Yaprak Sut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Yaprak Sut 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 Yaprak Sut will offset losses from the drop in Yaprak Sut's long position.MEGA METAL vs. SASA Polyester Sanayi | MEGA METAL vs. Turkish Airlines | MEGA METAL vs. Koc Holding AS | MEGA METAL vs. Ford Otomotiv 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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