Correlation Between Politeknik Metal and Ihlas Yayin
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Ihlas Yayin 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 Ihlas Yayin 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 Ihlas Yayin Holding, you can compare the effects of market volatilities on Politeknik Metal and Ihlas Yayin 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 Ihlas Yayin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Ihlas Yayin.
Diversification Opportunities for Politeknik Metal and Ihlas Yayin
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Politeknik and Ihlas is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Ihlas Yayin Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihlas Yayin 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 Ihlas Yayin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihlas Yayin Holding has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Ihlas Yayin go up and down completely randomly.
Pair Corralation between Politeknik Metal and Ihlas Yayin
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 0.8 times more return on investment than Ihlas Yayin. However, Politeknik Metal Sanayi is 1.26 times less risky than Ihlas Yayin. It trades about 0.12 of its potential returns per unit of risk. Ihlas Yayin Holding is currently generating about -0.31 per unit of risk. If you would invest 634,500 in Politeknik Metal Sanayi on September 20, 2024 and sell it today you would earn a total of 53,500 from holding Politeknik Metal Sanayi or generate 8.43% 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. Ihlas Yayin Holding
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Ihlas Yayin Holding |
Politeknik Metal and Ihlas Yayin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Ihlas Yayin
The main advantage of trading using opposite Politeknik Metal and Ihlas Yayin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Ihlas Yayin 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 Ihlas Yayin will offset losses from the drop in Ihlas Yayin'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 |
| Ihlas Yayin vs. Mackolik Internet Hizmetleri | Ihlas Yayin vs. Koza Anadolu Metal | Ihlas Yayin vs. Bms Birlesik Metal | Ihlas Yayin vs. Datagate Bilgisayar Malzemeleri |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |