Correlation Between Lumia and Marti Gayrimenkul

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

By analyzing existing cross correlation between Lumia and Marti Gayrimenkul Yatirim, you can compare the effects of market volatilities on Lumia and Marti Gayrimenkul 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 Lumia with a short position of Marti Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Marti Gayrimenkul.

Diversification Opportunities for Lumia and Marti Gayrimenkul

0.52

Correlation Coefficient

Lumia  Marti Gayrimenkul

Very weak diversification

The 3 months correlation between Lumia and Marti is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and Marti Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Gayrimenkul Yatirim and Lumia 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 Lumia are associated (or correlated) with Marti Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Gayrimenkul Yatirim has no effect on the direction of Lumia i.e., Lumia and Marti Gayrimenkul go up and down completely randomly.

Pair Corralation between Lumia and Marti Gayrimenkul

Assuming the 90 days trading horizon Lumia is expected to generate 78.06 times more return on investment than Marti Gayrimenkul. However, Lumia is 78.06 times more volatile than Marti Gayrimenkul Yatirim. It trades about 0.2 of its potential returns per unit of risk. Marti Gayrimenkul Yatirim is currently generating about -0.02 per unit of risk. If you would invest  0.00  in Lumia on October 11, 2024 and sell it today you would earn a total of  120.00  from holding Lumia or generate 9.223372036854776E16% return on investment over 90 days.

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

Lumia  vs.  Marti Gayrimenkul Yatirim

Lumia

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lumia are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Lumia exhibited solid returns over the last few months and may actually be approaching a breakup point.

Marti Gayrimenkul Yatirim

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Marti Gayrimenkul Yatirim are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Marti Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lumia and Marti Gayrimenkul

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

The idea behind Lumia and Marti Gayrimenkul Yatirim 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.