Correlation Between Politeknik Metal and Seker Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Seker 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 Seker 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 Seker Gayrimenkul Yatirim, you can compare the effects of market volatilities on Politeknik Metal and Seker 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 Seker Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Seker Gayrimenkul.
Diversification Opportunities for Politeknik Metal and Seker Gayrimenkul
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Politeknik and Seker is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Seker Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seker 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 Seker Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seker Gayrimenkul Yatirim has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Seker Gayrimenkul go up and down completely randomly.
Pair Corralation between Politeknik Metal and Seker Gayrimenkul
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to under-perform the Seker Gayrimenkul. In addition to that, Politeknik Metal is 1.1 times more volatile than Seker Gayrimenkul Yatirim. It trades about -0.05 of its total potential returns per unit of risk. Seker Gayrimenkul Yatirim is currently generating about -0.02 per unit of volatility. If you would invest 606.00 in Seker Gayrimenkul Yatirim on September 12, 2024 and sell it today you would lose (158.00) from holding Seker Gayrimenkul Yatirim or give up 26.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Seker Gayrimenkul Yatirim
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Seker Gayrimenkul Yatirim |
Politeknik Metal and Seker Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Seker Gayrimenkul
The main advantage of trading using opposite Politeknik Metal and Seker Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Seker 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 Seker Gayrimenkul will offset losses from the drop in Seker 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 |
| Seker Gayrimenkul vs. Gentas Genel Metal | Seker Gayrimenkul vs. Politeknik Metal Sanayi | Seker Gayrimenkul vs. Sodas Sodyum Sanayi | Seker Gayrimenkul 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
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |