Correlation Between Mackolik Internet and Flap Kongre

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

Diversification Opportunities for Mackolik Internet and Flap Kongre

-0.33

Correlation Coefficient

Mackolik Internet  Flap Kongre

Very good diversification

The 3 months correlation between Mackolik and Flap is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mackolik Internet Hizmetleri and Flap Kongre Toplanti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flap Kongre Toplanti 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 Flap Kongre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flap Kongre Toplanti has no effect on the direction of Mackolik Internet i.e., Mackolik Internet and Flap Kongre go up and down completely randomly.

Pair Corralation between Mackolik Internet and Flap Kongre

Assuming the 90 days trading horizon Mackolik Internet Hizmetleri is expected to generate 0.77 times more return on investment than Flap Kongre. However, Mackolik Internet Hizmetleri is 1.3 times less risky than Flap Kongre. It trades about 0.24 of its potential returns per unit of risk. Flap Kongre Toplanti is currently generating about -0.04 per unit of risk. If you would invest  7,515  in Mackolik Internet Hizmetleri on October 23, 2024 and sell it today you would earn a total of  2,885  from holding Mackolik Internet Hizmetleri or generate 38.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Mackolik Internet Hizmetleri  vs.  Flap Kongre Toplanti

Mackolik Internet

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mackolik Internet Hizmetleri are ranked lower than 18 (%) 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.

Flap Kongre Toplanti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flap Kongre Toplanti has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Mackolik Internet and Flap Kongre

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

The idea behind Mackolik Internet Hizmetleri and Flap Kongre Toplanti 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 Transaction History module to view history of all your transactions and understand their impact on performance.