Correlation Between Mackolik Internet and Oyak Cimento

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

Diversification Opportunities for Mackolik Internet and Oyak Cimento

0.87

Correlation Coefficient

Mackolik Internet  Oyak Cimento

Very poor diversification

The 3 months correlation between Mackolik and Oyak is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Mackolik Internet Hizmetleri and Oyak Cimento Fabrikalari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oyak Cimento Fabrikalari 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 Oyak Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oyak Cimento Fabrikalari has no effect on the direction of Mackolik Internet i.e., Mackolik Internet and Oyak Cimento go up and down completely randomly.

Pair Corralation between Mackolik Internet and Oyak Cimento

Assuming the 90 days trading horizon Mackolik Internet is expected to generate 1.03 times less return on investment than Oyak Cimento. But when comparing it to its historical volatility, Mackolik Internet Hizmetleri is 1.19 times less risky than Oyak Cimento. It trades about 0.28 of its potential returns per unit of risk. Oyak Cimento Fabrikalari is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  1,633  in Oyak Cimento Fabrikalari on October 7, 2024 and sell it today you would earn a total of  721.00  from holding Oyak Cimento Fabrikalari or generate 44.15% return on investment over 90 days.

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

Mackolik Internet Hizmetleri  vs.  Oyak Cimento Fabrikalari

Mackolik Internet

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mackolik Internet Hizmetleri are ranked lower than 21 (%) 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.

Oyak Cimento Fabrikalari

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oyak Cimento Fabrikalari are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Oyak Cimento demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mackolik Internet and Oyak Cimento

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

The idea behind Mackolik Internet Hizmetleri and Oyak Cimento Fabrikalari 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.