Correlation Between Is Girisim and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Is Girisim 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 Is Girisim and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Is Girisim Sermayesi and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Is Girisim 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 Is Girisim with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Girisim and Politeknik Metal.
Diversification Opportunities for Is Girisim and Politeknik Metal
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ISGSY and Politeknik is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Is Girisim Sermayesi 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 Is Girisim 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 Is Girisim Sermayesi 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 Is Girisim i.e., Is Girisim and Politeknik Metal go up and down completely randomly.
Pair Corralation between Is Girisim and Politeknik Metal
Assuming the 90 days trading horizon Is Girisim Sermayesi is expected to generate 0.97 times more return on investment than Politeknik Metal. However, Is Girisim Sermayesi is 1.03 times less risky than Politeknik Metal. It trades about 0.05 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about -0.12 per unit of risk. If you would invest 2,558 in Is Girisim Sermayesi on December 7, 2024 and sell it today you would earn a total of 872.00 from holding Is Girisim Sermayesi or generate 34.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Is Girisim Sermayesi vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Is Girisim Sermayesi |
| Politeknik Metal Sanayi |
Is Girisim and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Is Girisim and Politeknik Metal
The main advantage of trading using opposite Is Girisim and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Is Girisim 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.| Is Girisim vs. Silverline Endustri ve | Is Girisim vs. CEO Event Medya | Is Girisim vs. Politeknik Metal Sanayi | Is Girisim vs. Akcansa Cimento Sanayi |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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