Correlation Between MEGA METAL and Dogus Gayrimenkul

Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Dogus Gayrimenkul 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 MEGA METAL and Dogus Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MEGA METAL and Dogus Gayrimenkul Yatirim, you can compare the effects of market volatilities on MEGA METAL and Dogus Gayrimenkul 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 MEGA METAL with a short position of Dogus Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Dogus Gayrimenkul.

Diversification Opportunities for MEGA METAL and Dogus Gayrimenkul

0.21

Correlation Coefficient

MEGA METAL  Dogus Gayrimenkul

Modest diversification

The 3 months correlation between MEGA and Dogus is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Dogus Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogus Gayrimenkul Yatirim and MEGA METAL 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 MEGA METAL are associated (or correlated) with Dogus Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogus Gayrimenkul Yatirim has no effect on the direction of MEGA METAL i.e., MEGA METAL and Dogus Gayrimenkul go up and down completely randomly.

Pair Corralation between MEGA METAL and Dogus Gayrimenkul

Assuming the 90 days trading horizon MEGA METAL is expected to generate 2.58 times less return on investment than Dogus Gayrimenkul. In addition to that, MEGA METAL is 1.02 times more volatile than Dogus Gayrimenkul Yatirim. It trades about 0.02 of its total potential returns per unit of risk. Dogus Gayrimenkul Yatirim is currently generating about 0.06 per unit of volatility. If you would invest  1,903  in Dogus Gayrimenkul Yatirim on September 22, 2024 and sell it today you would earn a total of  2,365  from holding Dogus Gayrimenkul Yatirim or generate 124.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	51.21%
Values	Daily Returns

MEGA METAL  vs.  Dogus Gayrimenkul Yatirim

MEGA METAL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MEGA METAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Dogus Gayrimenkul Yatirim

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dogus Gayrimenkul Yatirim are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Dogus Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MEGA METAL and Dogus Gayrimenkul

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

The idea behind MEGA METAL and Dogus Gayrimenkul Yatirim 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.

Check out your portfolio center.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.