Correlation Between Politeknik Metal and Akfen Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Akfen Gayrimenkul 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 Akfen Gayrimenkul 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 Akfen Gayrimenkul Yatirim, you can compare the effects of market volatilities on Politeknik Metal and Akfen Gayrimenkul 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 Akfen Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Akfen Gayrimenkul.
Diversification Opportunities for Politeknik Metal and Akfen Gayrimenkul
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Politeknik and Akfen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Akfen Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akfen Gayrimenkul Yatirim 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 Akfen Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akfen Gayrimenkul Yatirim has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Akfen Gayrimenkul go up and down completely randomly.
Pair Corralation between Politeknik Metal and Akfen Gayrimenkul
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to under-perform the Akfen Gayrimenkul. In addition to that, Politeknik Metal is 1.55 times more volatile than Akfen Gayrimenkul Yatirim. It trades about -0.03 of its total potential returns per unit of risk. Akfen Gayrimenkul Yatirim is currently generating about 0.01 per unit of volatility. If you would invest 226.00 in Akfen Gayrimenkul Yatirim on September 14, 2024 and sell it today you would lose (9.00) from holding Akfen Gayrimenkul Yatirim or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Akfen Gayrimenkul Yatirim
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Akfen Gayrimenkul Yatirim |
Politeknik Metal and Akfen Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Akfen Gayrimenkul
The main advantage of trading using opposite Politeknik Metal and Akfen Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Akfen Gayrimenkul 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 Akfen Gayrimenkul will offset losses from the drop in Akfen Gayrimenkul's long position.| Politeknik Metal vs. Turkiye Kalkinma Bankasi | Politeknik Metal vs. Bms Birlesik Metal | Politeknik Metal vs. Datagate Bilgisayar Malzemeleri | Politeknik Metal vs. Akcansa Cimento Sanayi |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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