Correlation Between Kustur Kusadasi and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Kustur Kusadasi 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 Kustur Kusadasi and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kustur Kusadasi Turizm and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Kustur Kusadasi 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 Kustur Kusadasi with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kustur Kusadasi and Politeknik Metal.
Diversification Opportunities for Kustur Kusadasi and Politeknik Metal
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kustur and Politeknik is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kustur Kusadasi Turizm 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 Kustur Kusadasi 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 Kustur Kusadasi Turizm 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 Kustur Kusadasi i.e., Kustur Kusadasi and Politeknik Metal go up and down completely randomly.
Pair Corralation between Kustur Kusadasi and Politeknik Metal
Assuming the 90 days trading horizon Kustur Kusadasi Turizm is expected to generate 1.29 times more return on investment than Politeknik Metal. However, Kustur Kusadasi is 1.29 times more volatile than Politeknik Metal Sanayi. It trades about 0.13 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about 0.08 per unit of risk. If you would invest 30,265 in Kustur Kusadasi Turizm on August 31, 2024 and sell it today you would earn a total of 251,235 from holding Kustur Kusadasi Turizm or generate 830.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kustur Kusadasi Turizm vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Kustur Kusadasi Turizm |
| Politeknik Metal Sanayi |
Kustur Kusadasi and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kustur Kusadasi and Politeknik Metal
The main advantage of trading using opposite Kustur Kusadasi and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kustur Kusadasi 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.| Kustur Kusadasi vs. Koc Holding AS | Kustur Kusadasi vs. Turkiye Is Bankasi | Kustur Kusadasi vs. Turkiye Is Bankasi | Kustur Kusadasi vs. Turkiye Garanti Bankasi |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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