Correlation Between MEGA METAL and Yesil Yatirim

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

Diversification Opportunities for MEGA METAL and Yesil Yatirim

0.25

Correlation Coefficient

MEGA METAL  Yesil Yatirim

Modest diversification

The 3 months correlation between MEGA and Yesil is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding MEGA METAL and Yesil Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yatirim Holding 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 Yesil Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yatirim Holding has no effect on the direction of MEGA METAL i.e., MEGA METAL and Yesil Yatirim go up and down completely randomly.

Pair Corralation between MEGA METAL and Yesil Yatirim

Assuming the 90 days trading horizon MEGA METAL is expected to generate 1.15 times more return on investment than Yesil Yatirim. However, MEGA METAL is 1.15 times more volatile than Yesil Yatirim Holding. It trades about 0.03 of its potential returns per unit of risk. Yesil Yatirim Holding is currently generating about 0.0 per unit of risk. If you would invest  3,112  in MEGA METAL on September 12, 2024 and sell it today you would earn a total of  178.00  from holding MEGA METAL or generate 5.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	70.09%
Values	Daily Returns

MEGA METAL  vs.  Yesil Yatirim Holding

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.

Yesil Yatirim Holding

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yesil Yatirim Holding are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yesil Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MEGA METAL and Yesil Yatirim

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

The idea behind MEGA METAL and Yesil Yatirim Holding 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.