Correlation Between MEGA METAL and Saray Matbaacilik

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

By analyzing existing cross correlation between MEGA METAL and Saray Matbaacilik Kagitcilik, you can compare the effects of market volatilities on MEGA METAL and Saray Matbaacilik 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 Saray Matbaacilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Saray Matbaacilik.

Diversification Opportunities for MEGA METAL and Saray Matbaacilik

-0.3

Correlation Coefficient

MEGA METAL  Saray Matbaacilik

Very good diversification

The 3 months correlation between MEGA and Saray is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Saray Matbaacilik Kagitcilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saray Matbaacilik 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 Saray Matbaacilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saray Matbaacilik has no effect on the direction of MEGA METAL i.e., MEGA METAL and Saray Matbaacilik go up and down completely randomly.

Pair Corralation between MEGA METAL and Saray Matbaacilik

Assuming the 90 days trading horizon MEGA METAL is expected to generate 1.99 times less return on investment than Saray Matbaacilik. But when comparing it to its historical volatility, MEGA METAL is 1.19 times less risky than Saray Matbaacilik. It trades about 0.02 of its potential returns per unit of risk. Saray Matbaacilik Kagitcilik is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,034  in Saray Matbaacilik Kagitcilik on October 24, 2024 and sell it today you would earn a total of  120.00  from holding Saray Matbaacilik Kagitcilik or generate 5.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	55.56%
Values	Daily Returns

MEGA METAL  vs.  Saray Matbaacilik Kagitcilik

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 fairly strong forward indicators, MEGA METAL is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Saray Matbaacilik

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Saray Matbaacilik Kagitcilik are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Saray Matbaacilik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MEGA METAL and Saray Matbaacilik

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

The idea behind MEGA METAL and Saray Matbaacilik Kagitcilik 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.