Correlation Between Politeknik Metal and Guler Yatirim
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Guler Yatirim 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 Guler Yatirim 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 Guler Yatirim Holding, you can compare the effects of market volatilities on Politeknik Metal and Guler Yatirim 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 Guler Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Guler Yatirim.
Diversification Opportunities for Politeknik Metal and Guler Yatirim
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Politeknik and Guler is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Guler Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guler Yatirim Holding 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 Guler Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guler Yatirim Holding has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Guler Yatirim go up and down completely randomly.
Pair Corralation between Politeknik Metal and Guler Yatirim
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 2.64 times more return on investment than Guler Yatirim. However, Politeknik Metal is 2.64 times more volatile than Guler Yatirim Holding. It trades about 0.15 of its potential returns per unit of risk. Guler Yatirim Holding is currently generating about 0.27 per unit of risk. If you would invest 637,250 in Politeknik Metal Sanayi on September 12, 2024 and sell it today you would earn a total of 74,750 from holding Politeknik Metal Sanayi or generate 11.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Guler Yatirim Holding
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Guler Yatirim Holding |
Politeknik Metal and Guler Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Guler Yatirim
The main advantage of trading using opposite Politeknik Metal and Guler Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Guler Yatirim 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 Guler Yatirim will offset losses from the drop in Guler Yatirim'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 |
| Guler Yatirim vs. Sekerbank TAS | Guler Yatirim vs. Turkiye Kalkinma Bankasi | Guler Yatirim vs. Bms Birlesik Metal | Guler Yatirim vs. Turkish Airlines |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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