Correlation Between Politeknik Metal and Euro Kapital
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Euro Kapital 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 Euro Kapital 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 Euro Kapital Yatirim, you can compare the effects of market volatilities on Politeknik Metal and Euro Kapital 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 Euro Kapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Euro Kapital.
Diversification Opportunities for Politeknik Metal and Euro Kapital
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Politeknik and Euro is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Euro Kapital Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Kapital 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 Euro Kapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Kapital Yatirim has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Euro Kapital go up and down completely randomly.
Pair Corralation between Politeknik Metal and Euro Kapital
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to under-perform the Euro Kapital. But the stock apears to be less risky and, when comparing its historical volatility, Politeknik Metal Sanayi is 1.07 times less risky than Euro Kapital. The stock trades about -0.13 of its potential returns per unit of risk. The Euro Kapital Yatirim is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 2,024 in Euro Kapital Yatirim on September 3, 2024 and sell it today you would lose (758.00) from holding Euro Kapital Yatirim or give up 37.45% 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. Euro Kapital Yatirim
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Euro Kapital Yatirim |
Politeknik Metal and Euro Kapital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Euro Kapital
The main advantage of trading using opposite Politeknik Metal and Euro Kapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Euro Kapital 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 Euro Kapital will offset losses from the drop in Euro Kapital's long position.| Politeknik Metal vs. Akcansa Cimento Sanayi | Politeknik Metal vs. Trabzonspor Sportif Yatirim | Politeknik Metal vs. Bms Birlesik Metal | Politeknik Metal vs. Koza Anadolu Metal |
| Euro Kapital vs. Sekerbank TAS | Euro Kapital vs. Turkish Airlines | Euro Kapital vs. Silverline Endustri ve | Euro Kapital 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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