Correlation Between MEGA METAL and Kuyas Yatirim
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Kuyas Yatirim 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 Kuyas Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Kuyas Yatirim AS, you can compare the effects of market volatilities on MEGA METAL and Kuyas Yatirim 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 Kuyas Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Kuyas Yatirim.
Diversification Opportunities for MEGA METAL and Kuyas Yatirim
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between MEGA and Kuyas is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Kuyas Yatirim AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuyas Yatirim AS 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 Kuyas Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuyas Yatirim AS has no effect on the direction of MEGA METAL i.e., MEGA METAL and Kuyas Yatirim go up and down completely randomly.
Pair Corralation between MEGA METAL and Kuyas Yatirim
Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Kuyas Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 1.57 times less risky than Kuyas Yatirim. The stock trades about -0.09 of its potential returns per unit of risk. The Kuyas Yatirim AS is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,024 in Kuyas Yatirim AS on December 29, 2024 and sell it today you would earn a total of 2,132 from holding Kuyas Yatirim AS or generate 105.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
MEGA METAL vs. Kuyas Yatirim AS
Performance |
Timeline |
MEGA METAL |
Kuyas Yatirim AS |
MEGA METAL and Kuyas Yatirim Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MEGA METAL and Kuyas Yatirim
The main advantage of trading using opposite MEGA METAL and Kuyas Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Kuyas Yatirim 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 Kuyas Yatirim will offset losses from the drop in Kuyas Yatirim's long position.The idea behind MEGA METAL and Kuyas Yatirim AS 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.Kuyas Yatirim vs. Bms Birlesik Metal | Kuyas Yatirim vs. Cuhadaroglu Metal Sanayi | Kuyas Yatirim vs. Datagate Bilgisayar Malzemeleri | Kuyas Yatirim vs. ICBC Turkey Bank |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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