Correlation Between Hedef Holdings and Mackolik Internet

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

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

Diversification Opportunities for Hedef Holdings and Mackolik Internet

0.34

Correlation Coefficient

Hedef Holdings  Mackolik Internet

Weak diversification

The 3 months correlation between Hedef and Mackolik is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Holdings AS and Mackolik Internet Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackolik Internet and Hedef Holdings 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 Hedef Holdings AS 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 Hedef Holdings i.e., Hedef Holdings and Mackolik Internet go up and down completely randomly.

Pair Corralation between Hedef Holdings and Mackolik Internet

Assuming the 90 days trading horizon Hedef Holdings AS is expected to generate 1.77 times more return on investment than Mackolik Internet. However, Hedef Holdings is 1.77 times more volatile than Mackolik Internet Hizmetleri. It trades about 0.31 of its potential returns per unit of risk. Mackolik Internet Hizmetleri is currently generating about 0.15 per unit of risk. If you would invest  320.00  in Hedef Holdings AS on October 11, 2024 and sell it today you would earn a total of  90.00  from holding Hedef Holdings AS or generate 28.12% return on investment over 90 days.

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

Hedef Holdings AS  vs.  Mackolik Internet Hizmetleri

Hedef Holdings AS

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hedef Holdings AS are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Hedef Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Mackolik Internet

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Mackolik Internet Hizmetleri are ranked lower than 26 (%) 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 Hedef Holdings and Mackolik Internet

The main advantage of trading using opposite Hedef Holdings and Mackolik Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedef Holdings 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 Hedef Holdings AS 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.

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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.