Correlation Between Kimteks Poliuretan and SASA Polyester
Can any of the company-specific risk be diversified away by investing in both Kimteks Poliuretan and SASA Polyester 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 Kimteks Poliuretan and SASA Polyester into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimteks Poliuretan Sanayi and SASA Polyester Sanayi, you can compare the effects of market volatilities on Kimteks Poliuretan and SASA Polyester 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 Kimteks Poliuretan with a short position of SASA Polyester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimteks Poliuretan and SASA Polyester.
Diversification Opportunities for Kimteks Poliuretan and SASA Polyester
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimteks and SASA is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kimteks Poliuretan Sanayi and SASA Polyester Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASA Polyester Sanayi and Kimteks Poliuretan 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 Kimteks Poliuretan Sanayi are associated (or correlated) with SASA Polyester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASA Polyester Sanayi has no effect on the direction of Kimteks Poliuretan i.e., Kimteks Poliuretan and SASA Polyester go up and down completely randomly.
Pair Corralation between Kimteks Poliuretan and SASA Polyester
Assuming the 90 days trading horizon Kimteks Poliuretan is expected to generate 1.39 times less return on investment than SASA Polyester. But when comparing it to its historical volatility, Kimteks Poliuretan Sanayi is 1.06 times less risky than SASA Polyester. It trades about 0.17 of its potential returns per unit of risk. SASA Polyester Sanayi is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 384.00 in SASA Polyester Sanayi on September 15, 2024 and sell it today you would earn a total of 48.00 from holding SASA Polyester Sanayi or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimteks Poliuretan Sanayi vs. SASA Polyester Sanayi
Performance |
| Timeline |
| Kimteks Poliuretan Sanayi |
| SASA Polyester Sanayi |
Kimteks Poliuretan and SASA Polyester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimteks Poliuretan and SASA Polyester
The main advantage of trading using opposite Kimteks Poliuretan and SASA Polyester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimteks Poliuretan position performs unexpectedly, SASA Polyester 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 SASA Polyester will offset losses from the drop in SASA Polyester's long position.| Kimteks Poliuretan vs. SASA Polyester Sanayi | Kimteks Poliuretan vs. Turkish Airlines | Kimteks Poliuretan vs. Koc Holding AS | Kimteks Poliuretan vs. Ford Otomotiv Sanayi |
| SASA Polyester vs. Ayes Celik Hasir | SASA Polyester vs. Trend Gayrimenkul Yatirim | SASA Polyester vs. Ege Endustri ve | SASA Polyester 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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