Correlation Between Politeknik Metal and CarrefourSA Carrefour
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and CarrefourSA Carrefour 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 CarrefourSA Carrefour 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 CarrefourSA Carrefour Sabanci, you can compare the effects of market volatilities on Politeknik Metal and CarrefourSA Carrefour 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 CarrefourSA Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and CarrefourSA Carrefour.
Diversification Opportunities for Politeknik Metal and CarrefourSA Carrefour
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Politeknik and CarrefourSA is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and CarrefourSA Carrefour Sabanci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CarrefourSA Carrefour 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 CarrefourSA Carrefour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CarrefourSA Carrefour has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and CarrefourSA Carrefour go up and down completely randomly.
Pair Corralation between Politeknik Metal and CarrefourSA Carrefour
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 1.28 times more return on investment than CarrefourSA Carrefour. However, Politeknik Metal is 1.28 times more volatile than CarrefourSA Carrefour Sabanci. It trades about 0.09 of its potential returns per unit of risk. CarrefourSA Carrefour Sabanci is currently generating about 0.04 per unit of risk. If you would invest 140,981 in Politeknik Metal Sanayi on September 14, 2024 and sell it today you would earn a total of 565,519 from holding Politeknik Metal Sanayi or generate 401.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. CarrefourSA Carrefour Sabanci
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| CarrefourSA Carrefour |
Politeknik Metal and CarrefourSA Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and CarrefourSA Carrefour
The main advantage of trading using opposite Politeknik Metal and CarrefourSA Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, CarrefourSA Carrefour 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 CarrefourSA Carrefour will offset losses from the drop in CarrefourSA Carrefour'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 |
| CarrefourSA Carrefour vs. MEGA METAL | CarrefourSA Carrefour vs. Akbank TAS | CarrefourSA Carrefour vs. Koza Anadolu Metal | CarrefourSA Carrefour vs. Galatasaray Sportif Sinai |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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