Correlation Between Mackolik Internet and Birlik Mensucat

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

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

Diversification Opportunities for Mackolik Internet and Birlik Mensucat

0.63

Correlation Coefficient

Mackolik Internet  Birlik Mensucat

Poor diversification

The 3 months correlation between Mackolik and Birlik is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mackolik Internet Hizmetleri and Birlik Mensucat Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birlik Mensucat Ticaret and Mackolik Internet 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 Mackolik Internet Hizmetleri are associated (or correlated) with Birlik Mensucat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birlik Mensucat Ticaret has no effect on the direction of Mackolik Internet i.e., Mackolik Internet and Birlik Mensucat go up and down completely randomly.

Pair Corralation between Mackolik Internet and Birlik Mensucat

Assuming the 90 days trading horizon Mackolik Internet Hizmetleri is expected to generate 0.59 times more return on investment than Birlik Mensucat. However, Mackolik Internet Hizmetleri is 1.71 times less risky than Birlik Mensucat. It trades about 0.28 of its potential returns per unit of risk. Birlik Mensucat Ticaret is currently generating about -0.16 per unit of risk. If you would invest  9,250  in Mackolik Internet Hizmetleri on September 23, 2024 and sell it today you would earn a total of  1,420  from holding Mackolik Internet Hizmetleri or generate 15.35% return on investment over 90 days.

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

Mackolik Internet Hizmetleri  vs.  Birlik Mensucat Ticaret

Mackolik Internet

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mackolik Internet Hizmetleri are ranked lower than 16 (%) 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.

Birlik Mensucat Ticaret

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Birlik Mensucat Ticaret has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Birlik Mensucat is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Mackolik Internet and Birlik Mensucat

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

The idea behind Mackolik Internet Hizmetleri and Birlik Mensucat Ticaret 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 Anywhere module to track or share privately all of your investments from the convenience of any device.