Correlation Between Bayrak EBT and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Bayrak EBT 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 Bayrak EBT and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bayrak EBT Taban and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Bayrak EBT 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 Bayrak EBT with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayrak EBT and Politeknik Metal.
Diversification Opportunities for Bayrak EBT and Politeknik Metal
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bayrak and Politeknik is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bayrak EBT Taban 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 Bayrak EBT 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 Bayrak EBT Taban 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 Bayrak EBT i.e., Bayrak EBT and Politeknik Metal go up and down completely randomly.
Pair Corralation between Bayrak EBT and Politeknik Metal
Assuming the 90 days trading horizon Bayrak EBT is expected to generate 2.88 times less return on investment than Politeknik Metal. But when comparing it to its historical volatility, Bayrak EBT Taban is 1.3 times less risky than Politeknik Metal. It trades about 0.07 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 637,250 in Politeknik Metal Sanayi on September 12, 2024 and sell it today you would earn a total of 74,750 from holding Politeknik Metal Sanayi or generate 11.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bayrak EBT Taban vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Bayrak EBT Taban |
| Politeknik Metal Sanayi |
Bayrak EBT and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayrak EBT and Politeknik Metal
The main advantage of trading using opposite Bayrak EBT and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayrak EBT 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.| Bayrak EBT vs. Cuhadaroglu Metal Sanayi | Bayrak EBT vs. Politeknik Metal Sanayi | Bayrak EBT vs. Trabzonspor Sportif Yatirim | Bayrak EBT vs. Turkiye Kalkinma Bankasi |
| Politeknik Metal vs. Ayes Celik Hasir | Politeknik Metal vs. Trend Gayrimenkul Yatirim | Politeknik Metal vs. Ege Endustri ve | Politeknik Metal vs. Alarko Carrier Sanayi |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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