Correlation Between Ihlas Yayin and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Ihlas Yayin 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 Ihlas Yayin and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihlas Yayin Holding and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Ihlas Yayin 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 Ihlas Yayin with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihlas Yayin and Politeknik Metal.
Diversification Opportunities for Ihlas Yayin and Politeknik Metal
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ihlas and Politeknik is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ihlas Yayin Holding 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 Ihlas Yayin 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 Ihlas Yayin Holding 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 Ihlas Yayin i.e., Ihlas Yayin and Politeknik Metal go up and down completely randomly.
Pair Corralation between Ihlas Yayin and Politeknik Metal
Assuming the 90 days trading horizon Ihlas Yayin is expected to generate 1.23 times less return on investment than Politeknik Metal. But when comparing it to its historical volatility, Ihlas Yayin Holding is 1.03 times less risky than Politeknik Metal. It trades about 0.08 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 139,981 in Politeknik Metal Sanayi on September 20, 2024 and sell it today you would earn a total of 548,019 from holding Politeknik Metal Sanayi or generate 391.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihlas Yayin Holding vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Ihlas Yayin Holding |
| Politeknik Metal Sanayi |
Ihlas Yayin and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihlas Yayin and Politeknik Metal
The main advantage of trading using opposite Ihlas Yayin and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihlas Yayin 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.| Ihlas Yayin vs. Mackolik Internet Hizmetleri | Ihlas Yayin vs. Koza Anadolu Metal | Ihlas Yayin vs. Bms Birlesik Metal | Ihlas Yayin vs. Datagate Bilgisayar Malzemeleri |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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