Correlation Between Politeknik Metal and Is Finansal
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Is Finansal 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 Is Finansal 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 Is Finansal Kiralama, you can compare the effects of market volatilities on Politeknik Metal and Is Finansal 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 Is Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Is Finansal.
Diversification Opportunities for Politeknik Metal and Is Finansal
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Politeknik and ISFIN is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Is Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Finansal Kiralama 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 Is Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Finansal Kiralama has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Is Finansal go up and down completely randomly.
Pair Corralation between Politeknik Metal and Is Finansal
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 2.74 times more return on investment than Is Finansal. However, Politeknik Metal is 2.74 times more volatile than Is Finansal Kiralama. It trades about -0.01 of its potential returns per unit of risk. Is Finansal Kiralama is currently generating about -0.09 per unit of risk. If you would invest 695,500 in Politeknik Metal Sanayi on November 4, 2024 and sell it today you would lose (17,500) from holding Politeknik Metal Sanayi or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Is Finansal Kiralama
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Is Finansal Kiralama |
Politeknik Metal and Is Finansal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Is Finansal
The main advantage of trading using opposite Politeknik Metal and Is Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Is Finansal 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 Is Finansal will offset losses from the drop in Is Finansal's long position.| Politeknik Metal vs. KOC METALURJI | Politeknik Metal vs. Silverline Endustri ve | Politeknik Metal vs. CEO Event Medya | Politeknik Metal vs. Bms Birlesik Metal |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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