Correlation Between Politeknik Metal and Turkiye Is
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Turkiye Is 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 Turkiye Is 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 Turkiye Is Bankasi, you can compare the effects of market volatilities on Politeknik Metal and Turkiye Is 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 Turkiye Is. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Turkiye Is.
Diversification Opportunities for Politeknik Metal and Turkiye Is
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Politeknik and Turkiye is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Turkiye Is Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Is Bankasi 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 Turkiye Is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Is Bankasi has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Turkiye Is go up and down completely randomly.
Pair Corralation between Politeknik Metal and Turkiye Is
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to under-perform the Turkiye Is. In addition to that, Politeknik Metal is 1.73 times more volatile than Turkiye Is Bankasi. It trades about -0.11 of its total potential returns per unit of risk. Turkiye Is Bankasi is currently generating about -0.19 per unit of volatility. If you would invest 53,999,500 in Turkiye Is Bankasi on November 27, 2024 and sell it today you would lose (3,999,700) from holding Turkiye Is Bankasi or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Turkiye Is Bankasi
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Turkiye Is Bankasi |
Politeknik Metal and Turkiye Is Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Turkiye Is
The main advantage of trading using opposite Politeknik Metal and Turkiye Is positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Turkiye Is 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 Turkiye Is will offset losses from the drop in Turkiye Is' long position.| Politeknik Metal vs. Mackolik Internet Hizmetleri | Politeknik Metal vs. KOC METALURJI | Politeknik Metal vs. ICBC Turkey Bank | Politeknik Metal vs. Gentas Genel Metal |
| Turkiye Is vs. Koza Anadolu Metal | Turkiye Is vs. E Data Teknoloji Pazarlama | Turkiye Is vs. Akbank TAS | Turkiye Is 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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