Correlation Between Oyak Cimento and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Oyak Cimento 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 Oyak Cimento and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oyak Cimento Fabrikalari and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Oyak Cimento 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 Oyak Cimento with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oyak Cimento and Politeknik Metal.
Diversification Opportunities for Oyak Cimento and Politeknik Metal
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oyak and Politeknik is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Oyak Cimento Fabrikalari 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 Oyak 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 Oyak Cimento Fabrikalari 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 Oyak Cimento i.e., Oyak Cimento and Politeknik Metal go up and down completely randomly.
Pair Corralation between Oyak Cimento and Politeknik Metal
Assuming the 90 days trading horizon Oyak Cimento Fabrikalari is expected to generate 0.59 times more return on investment than Politeknik Metal. However, Oyak Cimento Fabrikalari is 1.69 times less risky than Politeknik Metal. It trades about 0.49 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about 0.25 per unit of risk. If you would invest 5,840 in Oyak Cimento Fabrikalari on September 3, 2024 and sell it today you would earn a total of 1,400 from holding Oyak Cimento Fabrikalari or generate 23.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oyak Cimento Fabrikalari vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Oyak Cimento Fabrikalari |
| Politeknik Metal Sanayi |
Oyak Cimento and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oyak Cimento and Politeknik Metal
The main advantage of trading using opposite Oyak Cimento and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oyak Cimento 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.| Oyak Cimento vs. ICBC Turkey Bank | Oyak Cimento vs. Mackolik Internet Hizmetleri | Oyak Cimento vs. Politeknik Metal Sanayi | Oyak Cimento vs. E Data Teknoloji Pazarlama |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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