Correlation Between Platform Turizm and Mackolik Internet

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

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

Diversification Opportunities for Platform Turizm and Mackolik Internet

0.84

Correlation Coefficient

Platform Turizm  Mackolik Internet

Very poor diversification

The 3 months correlation between Platform and Mackolik is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Platform Turizm Tasimacilik and Mackolik Internet Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackolik Internet and Platform Turizm 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 Platform Turizm Tasimacilik 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 Platform Turizm i.e., Platform Turizm and Mackolik Internet go up and down completely randomly.

Pair Corralation between Platform Turizm and Mackolik Internet

Assuming the 90 days trading horizon Platform Turizm Tasimacilik is expected to generate 1.55 times more return on investment than Mackolik Internet. However, Platform Turizm is 1.55 times more volatile than Mackolik Internet Hizmetleri. It trades about 0.14 of its potential returns per unit of risk. Mackolik Internet Hizmetleri is currently generating about 0.2 per unit of risk. If you would invest  2,302  in Platform Turizm Tasimacilik on September 12, 2024 and sell it today you would earn a total of  732.00  from holding Platform Turizm Tasimacilik or generate 31.8% return on investment over 90 days.

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

Platform Turizm Tasimacilik  vs.  Mackolik Internet Hizmetleri

Platform Turizm Tasi

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Platform Turizm Tasimacilik are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Platform Turizm demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Mackolik Internet

Risk-Adjusted Performance

15 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mackolik Internet Hizmetleri are ranked lower than 15 (%) 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 Platform Turizm and Mackolik Internet

The main advantage of trading using opposite Platform Turizm and Mackolik Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platform Turizm 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 Platform Turizm Tasimacilik 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.