Correlation Between Mercan Kimya and Akcansa Cimento
Can any of the company-specific risk be diversified away by investing in both Mercan Kimya and Akcansa Cimento 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 Mercan Kimya and Akcansa Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercan Kimya Sanayi and Akcansa Cimento Sanayi, you can compare the effects of market volatilities on Mercan Kimya and Akcansa Cimento 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 Mercan Kimya with a short position of Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercan Kimya and Akcansa Cimento.
Diversification Opportunities for Mercan Kimya and Akcansa Cimento
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mercan and Akcansa is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Mercan Kimya Sanayi and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi and Mercan Kimya 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 Mercan Kimya Sanayi are associated (or correlated) with Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of Mercan Kimya i.e., Mercan Kimya and Akcansa Cimento go up and down completely randomly.
Pair Corralation between Mercan Kimya and Akcansa Cimento
Assuming the 90 days trading horizon Mercan Kimya is expected to generate 14.8 times less return on investment than Akcansa Cimento. In addition to that, Mercan Kimya is 1.06 times more volatile than Akcansa Cimento Sanayi. It trades about 0.01 of its total potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.08 per unit of volatility. If you would invest 6,244 in Akcansa Cimento Sanayi on September 23, 2024 and sell it today you would earn a total of 11,326 from holding Akcansa Cimento Sanayi or generate 181.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.99% |
Values | Daily Returns |
Mercan Kimya Sanayi vs. Akcansa Cimento Sanayi
Performance |
Timeline |
Mercan Kimya Sanayi |
Akcansa Cimento Sanayi |
Mercan Kimya and Akcansa Cimento Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mercan Kimya and Akcansa Cimento
The main advantage of trading using opposite Mercan Kimya and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercan Kimya position performs unexpectedly, Akcansa Cimento 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 Akcansa Cimento will offset losses from the drop in Akcansa Cimento's long position.Mercan Kimya vs. Akcansa Cimento Sanayi | Mercan Kimya vs. Trabzonspor Sportif Yatirim | Mercan Kimya vs. Bms Birlesik Metal | Mercan Kimya vs. E Data Teknoloji Pazarlama |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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