Correlation Between MEGA METAL and Trabzon Liman
Can any of the company-specific risk be diversified away by investing in both MEGA METAL and Trabzon Liman 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 Trabzon Liman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEGA METAL and Trabzon Liman Isletmeciligi, you can compare the effects of market volatilities on MEGA METAL and Trabzon Liman 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 Trabzon Liman. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEGA METAL and Trabzon Liman.
Diversification Opportunities for MEGA METAL and Trabzon Liman
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MEGA and Trabzon is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Trabzon Liman Isletmeciligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trabzon Liman Isletm 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 Trabzon Liman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trabzon Liman Isletm has no effect on the direction of MEGA METAL i.e., MEGA METAL and Trabzon Liman go up and down completely randomly.
Pair Corralation between MEGA METAL and Trabzon Liman
Assuming the 90 days trading horizon MEGA METAL is expected to under-perform the Trabzon Liman. But the stock apears to be less risky and, when comparing its historical volatility, MEGA METAL is 1.14 times less risky than Trabzon Liman. The stock trades about -0.09 of its potential returns per unit of risk. The Trabzon Liman Isletmeciligi is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 9,580 in Trabzon Liman Isletmeciligi on December 30, 2024 and sell it today you would lose (585.00) from holding Trabzon Liman Isletmeciligi or give up 6.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MEGA METAL vs. Trabzon Liman Isletmeciligi
Performance |
Timeline |
MEGA METAL |
Trabzon Liman Isletm |
MEGA METAL and Trabzon Liman Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MEGA METAL and Trabzon Liman
The main advantage of trading using opposite MEGA METAL and Trabzon Liman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEGA METAL position performs unexpectedly, Trabzon Liman 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 Trabzon Liman will offset losses from the drop in Trabzon Liman's long position.The idea behind MEGA METAL and Trabzon Liman Isletmeciligi 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.Trabzon Liman vs. Cuhadaroglu Metal Sanayi | Trabzon Liman vs. Koza Anadolu Metal | Trabzon Liman vs. Borlease Otomotiv AS | Trabzon Liman vs. KOC METALURJI |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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