Correlation Between Politeknik Metal and Burcelik Vana
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Burcelik Vana 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 Burcelik Vana 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 Burcelik Vana Sanayi, you can compare the effects of market volatilities on Politeknik Metal and Burcelik Vana 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 Burcelik Vana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Burcelik Vana.
Diversification Opportunities for Politeknik Metal and Burcelik Vana
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Politeknik and Burcelik is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Burcelik Vana Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burcelik Vana 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 Burcelik Vana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burcelik Vana Sanayi has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Burcelik Vana go up and down completely randomly.
Pair Corralation between Politeknik Metal and Burcelik Vana
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 0.94 times more return on investment than Burcelik Vana. However, Politeknik Metal Sanayi is 1.06 times less risky than Burcelik Vana. It trades about 0.09 of its potential returns per unit of risk. Burcelik Vana Sanayi is currently generating about 0.07 per unit of risk. If you would invest 145,880 in Politeknik Metal Sanayi on October 13, 2024 and sell it today you would earn a total of 531,620 from holding Politeknik Metal Sanayi or generate 364.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Burcelik Vana Sanayi
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Burcelik Vana Sanayi |
Politeknik Metal and Burcelik Vana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Burcelik Vana
The main advantage of trading using opposite Politeknik Metal and Burcelik Vana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Burcelik Vana 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 Burcelik Vana will offset losses from the drop in Burcelik Vana's long position.| Politeknik Metal vs. MEGA METAL | Politeknik Metal vs. Cuhadaroglu Metal Sanayi | Politeknik Metal vs. Bms Birlesik Metal | Politeknik Metal vs. KOC METALURJI |
| Burcelik Vana vs. Politeknik Metal Sanayi | Burcelik Vana vs. MEGA METAL | Burcelik Vana vs. Mackolik Internet Hizmetleri | Burcelik Vana vs. Turkiye Kalkinma Bankasi |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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