Correlation Between Papilon Savunma and SASA Polyester
Can any of the company-specific risk be diversified away by investing in both Papilon Savunma 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 Papilon Savunma and SASA Polyester into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Papilon Savunma Guvenlik and SASA Polyester Sanayi, you can compare the effects of market volatilities on Papilon Savunma 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 Papilon Savunma with a short position of SASA Polyester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Papilon Savunma and SASA Polyester.
Diversification Opportunities for Papilon Savunma and SASA Polyester
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Papilon and SASA is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Papilon Savunma Guvenlik 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 Papilon Savunma 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 Papilon Savunma Guvenlik 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 Papilon Savunma i.e., Papilon Savunma and SASA Polyester go up and down completely randomly.
Pair Corralation between Papilon Savunma and SASA Polyester
Assuming the 90 days trading horizon Papilon Savunma Guvenlik is expected to generate 2.25 times more return on investment than SASA Polyester. However, Papilon Savunma is 2.25 times more volatile than SASA Polyester Sanayi. It trades about 0.2 of its potential returns per unit of risk. SASA Polyester Sanayi is currently generating about -0.05 per unit of risk. If you would invest 1,064 in Papilon Savunma Guvenlik on September 27, 2024 and sell it today you would earn a total of 218.00 from holding Papilon Savunma Guvenlik or generate 20.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Papilon Savunma Guvenlik vs. SASA Polyester Sanayi
Performance |
| Timeline |
| Papilon Savunma Guvenlik |
| SASA Polyester Sanayi |
Papilon Savunma and SASA Polyester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Papilon Savunma and SASA Polyester
The main advantage of trading using opposite Papilon Savunma and SASA Polyester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Papilon Savunma 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.| Papilon Savunma vs. SASA Polyester Sanayi | Papilon Savunma vs. Turkish Airlines | Papilon Savunma vs. Koc Holding AS | Papilon Savunma vs. Ford Otomotiv Sanayi |
| SASA Polyester vs. Ege Endustri ve | SASA Polyester vs. Bosch Fren Sistemleri | SASA Polyester vs. Dogus Otomotiv Servis | SASA Polyester vs. Nuh Cimento 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |