Correlation Between Unlu Yatirim and MEGA METAL

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

By analyzing existing cross correlation between Unlu Yatirim Holding and MEGA METAL, you can compare the effects of market volatilities on Unlu Yatirim and MEGA METAL 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 Unlu Yatirim with a short position of MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unlu Yatirim and MEGA METAL.

Diversification Opportunities for Unlu Yatirim and MEGA METAL

0.46

Correlation Coefficient

Unlu Yatirim  MEGA METAL

Very weak diversification

The 3 months correlation between Unlu and MEGA is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Unlu Yatirim Holding and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Unlu Yatirim 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 Unlu Yatirim Holding are associated (or correlated) with MEGA METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEGA METAL has no effect on the direction of Unlu Yatirim i.e., Unlu Yatirim and MEGA METAL go up and down completely randomly.

Pair Corralation between Unlu Yatirim and MEGA METAL

Assuming the 90 days trading horizon Unlu Yatirim Holding is expected to generate 1.0 times more return on investment than MEGA METAL. However, Unlu Yatirim Holding is 1.0 times less risky than MEGA METAL. It trades about -0.08 of its potential returns per unit of risk. MEGA METAL is currently generating about -0.1 per unit of risk. If you would invest  1,442  in Unlu Yatirim Holding on December 23, 2024 and sell it today you would lose (176.00) from holding Unlu Yatirim Holding or give up 12.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Unlu Yatirim Holding  vs.  MEGA METAL

Unlu Yatirim Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Unlu Yatirim Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

MEGA METAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days MEGA METAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Unlu Yatirim and MEGA METAL

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

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