Correlation Between Iskenderun Demir and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Iskenderun Demir 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 Iskenderun Demir and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iskenderun Demir ve and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Iskenderun Demir 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 Iskenderun Demir with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iskenderun Demir and Politeknik Metal.
Diversification Opportunities for Iskenderun Demir and Politeknik Metal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Iskenderun and Politeknik is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Iskenderun Demir ve 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 Iskenderun Demir 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 Iskenderun Demir ve 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 Iskenderun Demir i.e., Iskenderun Demir and Politeknik Metal go up and down completely randomly.
Pair Corralation between Iskenderun Demir and Politeknik Metal
Assuming the 90 days trading horizon Iskenderun Demir ve is expected to generate 0.58 times more return on investment than Politeknik Metal. However, Iskenderun Demir ve is 1.74 times less risky than Politeknik Metal. It trades about -0.02 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about -0.11 per unit of risk. If you would invest 3,808 in Iskenderun Demir ve on November 27, 2024 and sell it today you would lose (48.00) from holding Iskenderun Demir ve or give up 1.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iskenderun Demir ve vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Iskenderun Demir |
| Politeknik Metal Sanayi |
Iskenderun Demir and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iskenderun Demir and Politeknik Metal
The main advantage of trading using opposite Iskenderun Demir and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iskenderun Demir 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.| Iskenderun Demir vs. E Data Teknoloji Pazarlama | Iskenderun Demir vs. ICBC Turkey Bank | Iskenderun Demir vs. KOC METALURJI | Iskenderun Demir vs. Sekerbank TAS |
| Politeknik Metal vs. Mackolik Internet Hizmetleri | Politeknik Metal vs. KOC METALURJI | Politeknik Metal vs. ICBC Turkey Bank | Politeknik Metal vs. Gentas Genel 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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