Correlation Between Yukselen Celik and MEGA METAL

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

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

Diversification Opportunities for Yukselen Celik and MEGA METAL

0.52

Correlation Coefficient

Yukselen Celik  MEGA METAL

Very weak diversification

The 3 months correlation between Yukselen and MEGA is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Yukselen Celik As and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL and Yukselen Celik 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 Yukselen Celik As 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 Yukselen Celik i.e., Yukselen Celik and MEGA METAL go up and down completely randomly.

Pair Corralation between Yukselen Celik and MEGA METAL

Assuming the 90 days trading horizon Yukselen Celik As is expected to under-perform the MEGA METAL. In addition to that, Yukselen Celik is 1.11 times more volatile than MEGA METAL. It trades about -0.04 of its total potential returns per unit of risk. MEGA METAL is currently generating about 0.01 per unit of volatility. If you would invest  3,248  in MEGA METAL on October 1, 2024 and sell it today you would earn a total of  4.00  from holding MEGA METAL or generate 0.12% return on investment over 90 days.

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

Yukselen Celik As  vs.  MEGA METAL

Yukselen Celik As

Risk-Adjusted Performance

0 of 100

Very Weak

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

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.

Pair Trading with Yukselen Celik and MEGA METAL

The main advantage of trading using opposite Yukselen Celik and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yukselen Celik 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 Yukselen Celik As 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.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.