Correlation Between Burcelik Vana and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Burcelik Vana 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 Burcelik Vana and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burcelik Vana Sanayi and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Burcelik Vana 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 Burcelik Vana with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burcelik Vana and Politeknik Metal.
Diversification Opportunities for Burcelik Vana and Politeknik Metal
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Burcelik and Politeknik is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Burcelik Vana 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 Burcelik Vana 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 Burcelik Vana 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 Burcelik Vana i.e., Burcelik Vana and Politeknik Metal go up and down completely randomly.
Pair Corralation between Burcelik Vana and Politeknik Metal
Assuming the 90 days trading horizon Burcelik Vana is expected to generate 1.17 times less return on investment than Politeknik Metal. In addition to that, Burcelik Vana is 1.06 times more volatile than Politeknik Metal Sanayi. It trades about 0.07 of its total potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about 0.09 per unit of volatility. If you would invest 145,880 in Politeknik Metal Sanayi on October 13, 2024 and sell it today you would earn a total of 531,620 from holding Politeknik Metal Sanayi or generate 364.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burcelik Vana Sanayi vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Burcelik Vana Sanayi |
| Politeknik Metal Sanayi |
Burcelik Vana and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burcelik Vana and Politeknik Metal
The main advantage of trading using opposite Burcelik Vana and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burcelik Vana 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.| Burcelik Vana vs. Politeknik Metal Sanayi | Burcelik Vana vs. MEGA METAL | Burcelik Vana vs. Mackolik Internet Hizmetleri | Burcelik Vana vs. Turkiye Kalkinma Bankasi |
| Politeknik Metal vs. MEGA METAL | Politeknik Metal vs. Cuhadaroglu Metal Sanayi | Politeknik Metal vs. Bms Birlesik Metal | Politeknik Metal vs. KOC METALURJI |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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