Correlation Between Politeknik Metal and Ingram Micro
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Ingram Micro 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 Ingram Micro 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 Ingram Micro Bilisim, you can compare the effects of market volatilities on Politeknik Metal and Ingram Micro 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 Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Ingram Micro.
Diversification Opportunities for Politeknik Metal and Ingram Micro
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Politeknik and Ingram is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Ingram Micro Bilisim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro Bilisim 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 Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro Bilisim has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Ingram Micro go up and down completely randomly.
Pair Corralation between Politeknik Metal and Ingram Micro
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 1.05 times more return on investment than Ingram Micro. However, Politeknik Metal is 1.05 times more volatile than Ingram Micro Bilisim. It trades about 0.09 of its potential returns per unit of risk. Ingram Micro Bilisim is currently generating about 0.07 per unit of risk. If you would invest 141,011 in Politeknik Metal Sanayi on September 19, 2024 and sell it today you would earn a total of 546,989 from holding Politeknik Metal Sanayi or generate 387.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Ingram Micro Bilisim
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Ingram Micro Bilisim |
Politeknik Metal and Ingram Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Ingram Micro
The main advantage of trading using opposite Politeknik Metal and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro'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 |
| Ingram Micro vs. Politeknik Metal Sanayi | Ingram Micro vs. Sekerbank TAS | Ingram Micro vs. Galatasaray Sportif Sinai | Ingram Micro vs. Akcansa Cimento Sanayi |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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