Correlation Between Nuh Cimento and SASA Polyester
Can any of the company-specific risk be diversified away by investing in both Nuh Cimento 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 Nuh Cimento and SASA Polyester into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuh Cimento Sanayi and SASA Polyester Sanayi, you can compare the effects of market volatilities on Nuh Cimento 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 Nuh Cimento with a short position of SASA Polyester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuh Cimento and SASA Polyester.
Diversification Opportunities for Nuh Cimento and SASA Polyester
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuh and SASA is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nuh Cimento 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 Nuh Cimento 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 Nuh Cimento 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 Nuh Cimento i.e., Nuh Cimento and SASA Polyester go up and down completely randomly.
Pair Corralation between Nuh Cimento and SASA Polyester
Assuming the 90 days trading horizon Nuh Cimento Sanayi is expected to generate 1.17 times more return on investment than SASA Polyester. However, Nuh Cimento is 1.17 times more volatile than SASA Polyester Sanayi. It trades about 0.08 of its potential returns per unit of risk. SASA Polyester Sanayi is currently generating about 0.01 per unit of risk. If you would invest 25,627 in Nuh Cimento Sanayi on October 15, 2024 and sell it today you would earn a total of 3,173 from holding Nuh Cimento Sanayi or generate 12.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuh Cimento Sanayi vs. SASA Polyester Sanayi
Performance |
| Timeline |
| Nuh Cimento Sanayi |
| SASA Polyester Sanayi |
Nuh Cimento and SASA Polyester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuh Cimento and SASA Polyester
The main advantage of trading using opposite Nuh Cimento and SASA Polyester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuh Cimento 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.| Nuh Cimento vs. Netas Telekomunikasyon AS | Nuh Cimento vs. Bosch Fren Sistemleri | Nuh Cimento vs. Brisa Bridgestone Sabanci | Nuh Cimento vs. IZDEMIR Enerji Elektrik |
| SASA Polyester vs. Hektas Ticaret TAS | SASA Polyester vs. Eregli Demir ve | SASA Polyester vs. Turkiye Sise ve | SASA Polyester vs. Turkiye Petrol Rafinerileri |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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