Correlation Between Politeknik Metal and Escort Teknoloji
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Escort Teknoloji 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 Escort Teknoloji 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 Escort Teknoloji Yatirim, you can compare the effects of market volatilities on Politeknik Metal and Escort Teknoloji 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 Escort Teknoloji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Escort Teknoloji.
Diversification Opportunities for Politeknik Metal and Escort Teknoloji
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Politeknik and Escort is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Escort Teknoloji Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escort Teknoloji 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 Escort Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escort Teknoloji Yatirim has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Escort Teknoloji go up and down completely randomly.
Pair Corralation between Politeknik Metal and Escort Teknoloji
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 0.84 times more return on investment than Escort Teknoloji. However, Politeknik Metal Sanayi is 1.19 times less risky than Escort Teknoloji. It trades about 0.07 of its potential returns per unit of risk. Escort Teknoloji Yatirim is currently generating about 0.05 per unit of risk. If you would invest 674,500 in Politeknik Metal Sanayi on August 28, 2024 and sell it today you would earn a total of 43,250 from holding Politeknik Metal Sanayi or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.62% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Escort Teknoloji Yatirim
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Escort Teknoloji Yatirim |
Politeknik Metal and Escort Teknoloji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Escort Teknoloji
The main advantage of trading using opposite Politeknik Metal and Escort Teknoloji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Escort Teknoloji 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 Escort Teknoloji will offset losses from the drop in Escort Teknoloji's long position.| Politeknik Metal vs. MEGA METAL | Politeknik Metal vs. Sekerbank TAS | Politeknik Metal vs. Cuhadaroglu Metal Sanayi | Politeknik Metal vs. Datagate Bilgisayar Malzemeleri |
| Escort Teknoloji vs. E Data Teknoloji Pazarlama | Escort Teknoloji vs. ICBC Turkey Bank | Escort Teknoloji vs. Politeknik Metal Sanayi | Escort Teknoloji vs. Sekerbank TAS |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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