Correlation Between Mackolik Internet and Girisim Elektrik

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

Diversification Opportunities for Mackolik Internet and Girisim Elektrik

0.41

Correlation Coefficient

Mackolik Internet  Girisim Elektrik

Very weak diversification

The 3 months correlation between Mackolik and Girisim is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Mackolik Internet Hizmetleri and Girisim Elektrik Taahhut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Girisim Elektrik Taahhut 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 Girisim Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Girisim Elektrik Taahhut has no effect on the direction of Mackolik Internet i.e., Mackolik Internet and Girisim Elektrik go up and down completely randomly.

Pair Corralation between Mackolik Internet and Girisim Elektrik

Assuming the 90 days trading horizon Mackolik Internet Hizmetleri is expected to under-perform the Girisim Elektrik. But the stock apears to be less risky and, when comparing its historical volatility, Mackolik Internet Hizmetleri is 1.07 times less risky than Girisim Elektrik. The stock trades about -0.02 of its potential returns per unit of risk. The Girisim Elektrik Taahhut is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  4,600  in Girisim Elektrik Taahhut on December 22, 2024 and sell it today you would lose (40.00) from holding Girisim Elektrik Taahhut or give up 0.87% of portfolio value over 90 days.

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

Mackolik Internet Hizmetleri  vs.  Girisim Elektrik Taahhut

Mackolik Internet

Risk-Adjusted Performance

Very Weak

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

Girisim Elektrik Taahhut

Risk-Adjusted Performance

Very Weak

Over the last 90 days Girisim Elektrik Taahhut has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Girisim Elektrik 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 Girisim Elektrik

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

The idea behind Mackolik Internet Hizmetleri and Girisim Elektrik Taahhut 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.