Correlation Between Turkiye Kalkinma and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Turkiye Kalkinma 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 Turkiye Kalkinma and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Kalkinma Bankasi and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Turkiye Kalkinma 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 Turkiye Kalkinma with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Kalkinma and Politeknik Metal.
Diversification Opportunities for Turkiye Kalkinma and Politeknik Metal
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Turkiye and Politeknik is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Kalkinma Bankasi 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 Turkiye Kalkinma 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 Turkiye Kalkinma Bankasi 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 Turkiye Kalkinma i.e., Turkiye Kalkinma and Politeknik Metal go up and down completely randomly.
Pair Corralation between Turkiye Kalkinma and Politeknik Metal
Assuming the 90 days trading horizon Turkiye Kalkinma is expected to generate 1.45 times less return on investment than Politeknik Metal. In addition to that, Turkiye Kalkinma is 1.48 times more volatile than Politeknik Metal Sanayi. It trades about 0.05 of its total potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about 0.1 per unit of volatility. If you would invest 110,075 in Politeknik Metal Sanayi on August 28, 2024 and sell it today you would earn a total of 607,675 from holding Politeknik Metal Sanayi or generate 552.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Kalkinma Bankasi vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Turkiye Kalkinma Bankasi |
| Politeknik Metal Sanayi |
Turkiye Kalkinma and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Kalkinma and Politeknik Metal
The main advantage of trading using opposite Turkiye Kalkinma and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Kalkinma 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.| Turkiye Kalkinma vs. Qnb Finansbank AS | Turkiye Kalkinma vs. Turkiye Vakiflar Bankasi | Turkiye Kalkinma vs. Turkiye Halk Bankasi | Turkiye Kalkinma vs. Turkiye Sinai Kalkinma |
| Politeknik Metal vs. MEGA METAL | Politeknik Metal vs. Sekerbank TAS | Politeknik Metal vs. Cuhadaroglu Metal Sanayi | Politeknik Metal vs. Datagate Bilgisayar Malzemeleri |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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