Correlation Between Ege Gubre and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Ege Gubre 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 Ege Gubre and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ege Gubre Sanayi and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Ege Gubre 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 Ege Gubre with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Gubre and Politeknik Metal.
Diversification Opportunities for Ege Gubre and Politeknik Metal
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ege and Politeknik is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ege Gubre 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 Ege Gubre 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 Ege Gubre 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 Ege Gubre i.e., Ege Gubre and Politeknik Metal go up and down completely randomly.
Pair Corralation between Ege Gubre and Politeknik Metal
Assuming the 90 days trading horizon Ege Gubre Sanayi is expected to generate 1.09 times more return on investment than Politeknik Metal. However, Ege Gubre is 1.09 times more volatile than Politeknik Metal Sanayi. It trades about 0.07 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about -0.13 per unit of risk. If you would invest 4,242 in Ege Gubre Sanayi on November 28, 2024 and sell it today you would earn a total of 2,058 from holding Ege Gubre Sanayi or generate 48.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ege Gubre Sanayi vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Ege Gubre Sanayi |
| Politeknik Metal Sanayi |
Ege Gubre and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Gubre and Politeknik Metal
The main advantage of trading using opposite Ege Gubre and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Gubre 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.| Ege Gubre vs. Sekerbank TAS | Ege Gubre vs. E Data Teknoloji Pazarlama | Ege Gubre vs. Cuhadaroglu Metal Sanayi | Ege Gubre vs. Politeknik Metal Sanayi |
| Politeknik Metal vs. Qnb Finansbank AS | Politeknik Metal vs. Cuhadaroglu Metal Sanayi | Politeknik Metal vs. Creditwest Faktoring AS | Politeknik Metal vs. MEGA METAL |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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