Correlation Between Ingram Micro and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Ingram Micro 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 Ingram Micro and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingram Micro Bilisim and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Ingram Micro 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 Ingram Micro with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingram Micro and Politeknik Metal.
Diversification Opportunities for Ingram Micro and Politeknik Metal
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ingram and Politeknik is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ingram Micro Bilisim 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 Ingram Micro 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 Ingram Micro Bilisim 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 Ingram Micro i.e., Ingram Micro and Politeknik Metal go up and down completely randomly.
Pair Corralation between Ingram Micro and Politeknik Metal
Assuming the 90 days trading horizon Ingram Micro is expected to generate 1.81 times less return on investment than Politeknik Metal. But when comparing it to its historical volatility, Ingram Micro Bilisim is 1.22 times less risky than Politeknik Metal. It trades about 0.09 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 604,500 in Politeknik Metal Sanayi on September 19, 2024 and sell it today you would earn a total of 100,500 from holding Politeknik Metal Sanayi or generate 16.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingram Micro Bilisim vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Ingram Micro Bilisim |
| Politeknik Metal Sanayi |
Ingram Micro and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingram Micro and Politeknik Metal
The main advantage of trading using opposite Ingram Micro and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingram Micro 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.| Ingram Micro vs. Politeknik Metal Sanayi | Ingram Micro vs. Sekerbank TAS | Ingram Micro vs. Galatasaray Sportif Sinai | Ingram Micro vs. Akcansa Cimento Sanayi |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |