Correlation Between Mackolik Internet and Euro Menkul

Can any of the company-specific risk be diversified away by investing in both Mackolik Internet and Euro Menkul 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 Euro Menkul 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 Euro Menkul Kiymet, you can compare the effects of market volatilities on Mackolik Internet and Euro Menkul 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 Euro Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackolik Internet and Euro Menkul.

Diversification Opportunities for Mackolik Internet and Euro Menkul

0.63

Correlation Coefficient

Mackolik Internet  Euro Menkul

Poor diversification

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

Pair Corralation between Mackolik Internet and Euro Menkul

Assuming the 90 days trading horizon Mackolik Internet Hizmetleri is expected to generate 0.56 times more return on investment than Euro Menkul. However, Mackolik Internet Hizmetleri is 1.78 times less risky than Euro Menkul. It trades about 0.13 of its potential returns per unit of risk. Euro Menkul Kiymet is currently generating about -0.07 per unit of risk. If you would invest  10,450  in Mackolik Internet Hizmetleri on October 26, 2024 and sell it today you would earn a total of  660.00  from holding Mackolik Internet Hizmetleri or generate 6.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

Mackolik Internet Hizmetleri  vs.  Euro Menkul Kiymet

Mackolik Internet

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mackolik Internet Hizmetleri are ranked lower than 19 (%) 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.

Euro Menkul Kiymet

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Euro Menkul Kiymet are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Euro Menkul unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mackolik Internet and Euro Menkul

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

The idea behind Mackolik Internet Hizmetleri and Euro Menkul Kiymet 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..