Correlation Between Politeknik Metal and Halk Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Halk Gayrimenkul 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 Halk Gayrimenkul 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 Halk Gayrimenkul Yatirim, you can compare the effects of market volatilities on Politeknik Metal and Halk Gayrimenkul 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 Halk Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Halk Gayrimenkul.
Diversification Opportunities for Politeknik Metal and Halk Gayrimenkul
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Politeknik and Halk is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Halk Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halk Gayrimenkul 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 Halk Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halk Gayrimenkul Yatirim has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Halk Gayrimenkul go up and down completely randomly.
Pair Corralation between Politeknik Metal and Halk Gayrimenkul
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 1.45 times more return on investment than Halk Gayrimenkul. However, Politeknik Metal is 1.45 times more volatile than Halk Gayrimenkul Yatirim. It trades about 0.23 of its potential returns per unit of risk. Halk Gayrimenkul Yatirim is currently generating about 0.21 per unit of risk. If you would invest 639,750 in Politeknik Metal Sanayi on August 31, 2024 and sell it today you would earn a total of 115,500 from holding Politeknik Metal Sanayi or generate 18.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Halk Gayrimenkul Yatirim
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Halk Gayrimenkul Yatirim |
Politeknik Metal and Halk Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Halk Gayrimenkul
The main advantage of trading using opposite Politeknik Metal and Halk Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Halk Gayrimenkul 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 Halk Gayrimenkul will offset losses from the drop in Halk Gayrimenkul's long position.| Politeknik Metal vs. Trend Gayrimenkul Yatirim | Politeknik Metal vs. Trabzon Liman Isletmeciligi | Politeknik Metal vs. Halk Gayrimenkul Yatirim | Politeknik Metal vs. Inveo Yatirim Holding |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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