Correlation Between Politeknik Metal and Afyon Cimento
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Afyon Cimento 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 Politeknik Metal and Afyon Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Politeknik Metal Sanayi and Afyon Cimento Sanayi, you can compare the effects of market volatilities on Politeknik Metal and Afyon Cimento 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 Politeknik Metal with a short position of Afyon Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Afyon Cimento.
Diversification Opportunities for Politeknik Metal and Afyon Cimento
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Politeknik and Afyon is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Afyon Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afyon Cimento Sanayi and Politeknik Metal 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 Politeknik Metal Sanayi are associated (or correlated) with Afyon Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afyon Cimento Sanayi has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Afyon Cimento go up and down completely randomly.
Pair Corralation between Politeknik Metal and Afyon Cimento
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 1.37 times more return on investment than Afyon Cimento. However, Politeknik Metal is 1.37 times more volatile than Afyon Cimento Sanayi. It trades about 0.11 of its potential returns per unit of risk. Afyon Cimento Sanayi is currently generating about 0.06 per unit of risk. If you would invest 109,485 in Politeknik Metal Sanayi on August 29, 2024 and sell it today you would earn a total of 680,015 from holding Politeknik Metal Sanayi or generate 621.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Afyon Cimento Sanayi
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Afyon Cimento Sanayi |
Politeknik Metal and Afyon Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Afyon Cimento
The main advantage of trading using opposite Politeknik Metal and Afyon Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Afyon Cimento 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 Afyon Cimento will offset losses from the drop in Afyon Cimento's long position.| Politeknik Metal vs. MEGA METAL | Politeknik Metal vs. ICBC Turkey Bank | Politeknik Metal vs. Gentas Genel Metal | Politeknik Metal vs. Koza Anadolu Metal |
| Afyon Cimento vs. MEGA METAL | Afyon Cimento vs. E Data Teknoloji Pazarlama | Afyon Cimento vs. Trabzonspor Sportif Yatirim | Afyon Cimento vs. Creditwest Faktoring AS |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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