Correlation Between Politeknik Metal and Merko Gida
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Merko Gida 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 Merko Gida 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 Merko Gida Sanayi, you can compare the effects of market volatilities on Politeknik Metal and Merko Gida 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 Merko Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Merko Gida.
Diversification Opportunities for Politeknik Metal and Merko Gida
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Politeknik and Merko is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Merko Gida Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merko Gida Sanayi 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 Merko Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merko Gida Sanayi has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Merko Gida go up and down completely randomly.
Pair Corralation between Politeknik Metal and Merko Gida
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 0.97 times more return on investment than Merko Gida. However, Politeknik Metal Sanayi is 1.03 times less risky than Merko Gida. It trades about 0.23 of its potential returns per unit of risk. Merko Gida Sanayi is currently generating about 0.03 per unit of risk. If you would invest 639,750 in Politeknik Metal Sanayi on August 30, 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Merko Gida Sanayi
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Merko Gida Sanayi |
Politeknik Metal and Merko Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Merko Gida
The main advantage of trading using opposite Politeknik Metal and Merko Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Merko Gida 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 Merko Gida will offset losses from the drop in Merko Gida's long position.| Politeknik Metal vs. Is Yatirim Ortakligi | Politeknik Metal vs. Euro Kapital Yatirim | Politeknik Metal vs. Atlas Menkul Kiymetler | Politeknik Metal vs. Dogus Gayrimenkul Yatirim |
| Merko Gida vs. E Data Teknoloji Pazarlama | Merko Gida vs. Bms Birlesik Metal | Merko Gida vs. Politeknik Metal Sanayi | Merko Gida vs. Koza Anadolu Metal |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |