Correlation Between Politeknik Metal and Nurol Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Nurol Gayrimenkul 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 Nurol Gayrimenkul 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 Nurol Gayrimenkul Yatirim, you can compare the effects of market volatilities on Politeknik Metal and Nurol Gayrimenkul 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 Nurol Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Nurol Gayrimenkul.
Diversification Opportunities for Politeknik Metal and Nurol Gayrimenkul
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Politeknik and Nurol is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Nurol Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nurol Gayrimenkul Yatirim 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 Nurol Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nurol Gayrimenkul Yatirim has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Nurol Gayrimenkul go up and down completely randomly.
Pair Corralation between Politeknik Metal and Nurol Gayrimenkul
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 2.08 times more return on investment than Nurol Gayrimenkul. However, Politeknik Metal is 2.08 times more volatile than Nurol Gayrimenkul Yatirim. It trades about 0.11 of its potential returns per unit of risk. Nurol Gayrimenkul Yatirim is currently generating about -0.03 per unit of risk. If you would invest 633,500 in Politeknik Metal Sanayi on September 21, 2024 and sell it today you would earn a total of 49,500 from holding Politeknik Metal Sanayi or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Nurol Gayrimenkul Yatirim
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Nurol Gayrimenkul Yatirim |
Politeknik Metal and Nurol Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Nurol Gayrimenkul
The main advantage of trading using opposite Politeknik Metal and Nurol Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Nurol Gayrimenkul 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 Nurol Gayrimenkul will offset losses from the drop in Nurol Gayrimenkul'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 |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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