Correlation Between Politeknik Metal and Baticim Bati
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Baticim Bati 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 Baticim Bati 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 Baticim Bati Anadolu, you can compare the effects of market volatilities on Politeknik Metal and Baticim Bati 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 Baticim Bati. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Baticim Bati.
Diversification Opportunities for Politeknik Metal and Baticim Bati
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Politeknik and Baticim is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Baticim Bati Anadolu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baticim Bati Anadolu 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 Baticim Bati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baticim Bati Anadolu has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Baticim Bati go up and down completely randomly.
Pair Corralation between Politeknik Metal and Baticim Bati
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 1.34 times more return on investment than Baticim Bati. However, Politeknik Metal is 1.34 times more volatile than Baticim Bati Anadolu. It trades about 0.09 of its potential returns per unit of risk. Baticim Bati Anadolu is currently generating about 0.08 per unit of risk. If you would invest 140,981 in Politeknik Metal Sanayi on September 13, 2024 and sell it today you would earn a total of 559,019 from holding Politeknik Metal Sanayi or generate 396.52% 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. Baticim Bati Anadolu
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Baticim Bati Anadolu |
Politeknik Metal and Baticim Bati Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Baticim Bati
The main advantage of trading using opposite Politeknik Metal and Baticim Bati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Baticim Bati 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 Baticim Bati will offset losses from the drop in Baticim Bati's long position.| Politeknik Metal vs. Ayes Celik Hasir | Politeknik Metal vs. Trend Gayrimenkul Yatirim | Politeknik Metal vs. Ege Endustri ve | Politeknik Metal vs. Alarko Carrier Sanayi |
| Baticim Bati vs. Bms Birlesik Metal | Baticim Bati vs. MEGA METAL | Baticim Bati vs. ICBC Turkey Bank | Baticim Bati vs. Trabzonspor Sportif Yatirim |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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