Correlation Between Aselsan Elektronik and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Aselsan Elektronik and Politeknik 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 Aselsan Elektronik and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aselsan Elektronik Sanayi and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Aselsan Elektronik and Politeknik 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 Aselsan Elektronik with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aselsan Elektronik and Politeknik Metal.
Diversification Opportunities for Aselsan Elektronik and Politeknik Metal
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aselsan and Politeknik is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aselsan Elektronik Sanayi and Politeknik Metal Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Politeknik Metal Sanayi and Aselsan Elektronik 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 Aselsan Elektronik Sanayi are associated (or correlated) with Politeknik Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Politeknik Metal Sanayi has no effect on the direction of Aselsan Elektronik i.e., Aselsan Elektronik and Politeknik Metal go up and down completely randomly.
Pair Corralation between Aselsan Elektronik and Politeknik Metal
Assuming the 90 days trading horizon Aselsan Elektronik Sanayi is expected to generate 0.71 times more return on investment than Politeknik Metal. However, Aselsan Elektronik Sanayi is 1.4 times less risky than Politeknik Metal. It trades about 0.29 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about 0.2 per unit of risk. If you would invest 6,010 in Aselsan Elektronik Sanayi on August 28, 2024 and sell it today you would earn a total of 745.00 from holding Aselsan Elektronik Sanayi or generate 12.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aselsan Elektronik Sanayi vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Aselsan Elektronik Sanayi |
| Politeknik Metal Sanayi |
Aselsan Elektronik and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aselsan Elektronik and Politeknik Metal
The main advantage of trading using opposite Aselsan Elektronik and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aselsan Elektronik position performs unexpectedly, Politeknik 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 Politeknik Metal will offset losses from the drop in Politeknik Metal's long position.| Aselsan Elektronik vs. Turkish Airlines | Aselsan Elektronik vs. Turkiye Petrol Rafinerileri | Aselsan Elektronik vs. Petkim Petrokimya Holding | Aselsan Elektronik vs. Eregli Demir ve |
| Politeknik Metal vs. MEGA METAL | Politeknik Metal vs. Sekerbank TAS | Politeknik Metal vs. Cuhadaroglu Metal Sanayi | Politeknik Metal vs. Datagate Bilgisayar Malzemeleri |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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