Correlation Between MEGA METAL and Trend Gayrimenkul

Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Trend 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 Trend 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 Trend Gayrimenkul Yatirim, you can compare the effects of market volatilities on MEGA METAL and Trend 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 Trend Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Trend Gayrimenkul.

Diversification Opportunities for MEGA METAL and Trend Gayrimenkul

-0.59

Correlation Coefficient

MEGA METAL  Trend Gayrimenkul

Excellent diversification

The 3 months correlation between MEGA and Trend is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Trend Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend 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 Trend Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Gayrimenkul Yatirim has no effect on the direction of MEGA METAL i.e., MEGA METAL and Trend Gayrimenkul go up and down completely randomly.

Pair Corralation between MEGA METAL and Trend Gayrimenkul

Assuming the 90 days trading horizon MEGA METAL is expected to generate 2.37 times less return on investment than Trend Gayrimenkul. But when comparing it to its historical volatility, MEGA METAL is 1.52 times less risky than Trend Gayrimenkul. It trades about 0.03 of its potential returns per unit of risk. Trend Gayrimenkul Yatirim is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  634.00  in Trend Gayrimenkul Yatirim on September 16, 2024 and sell it today you would earn a total of  498.00  from holding Trend Gayrimenkul Yatirim or generate 78.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	50.3%
Values	Daily Returns

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

Trend Gayrimenkul Yatirim

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with MEGA METAL and Trend Gayrimenkul

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

The idea behind MEGA METAL and Trend 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.