Correlation Between Nasmed Ozel and MEGA METAL

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

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

Diversification Opportunities for Nasmed Ozel and MEGA METAL

0.65

Correlation Coefficient

Nasmed Ozel  MEGA METAL

Poor diversification

The 3 months correlation between Nasmed and MEGA is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Nasmed Ozel Saglik and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Nasmed Ozel 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 Nasmed Ozel Saglik are associated (or correlated) with MEGA METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEGA METAL has no effect on the direction of Nasmed Ozel i.e., Nasmed Ozel and MEGA METAL go up and down completely randomly.

Pair Corralation between Nasmed Ozel and MEGA METAL

Assuming the 90 days trading horizon Nasmed Ozel Saglik is expected to generate 1.5 times more return on investment than MEGA METAL. However, Nasmed Ozel is 1.5 times more volatile than MEGA METAL. It trades about -0.03 of its potential returns per unit of risk. MEGA METAL is currently generating about -0.1 per unit of risk. If you would invest  595.00  in Nasmed Ozel Saglik on December 22, 2024 and sell it today you would lose (60.00) from holding Nasmed Ozel Saglik or give up 10.08% of portfolio value over 90 days.

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

Nasmed Ozel Saglik  vs.  MEGA METAL

Nasmed Ozel Saglik

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nasmed Ozel Saglik 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.

MEGA METAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days MEGA METAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Nasmed Ozel and MEGA METAL

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

The idea behind Nasmed Ozel Saglik and MEGA METAL 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.