Correlation Between Politeknik Metal and Seker Finansal
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Seker 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 Seker 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 Seker Finansal Kiralama, you can compare the effects of market volatilities on Politeknik Metal and Seker 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 Seker Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Seker Finansal.
Diversification Opportunities for Politeknik Metal and Seker Finansal
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Politeknik and Seker is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Seker Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seker 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 Seker Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seker Finansal Kiralama has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Seker Finansal go up and down completely randomly.
Pair Corralation between Politeknik Metal and Seker Finansal
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 2.03 times more return on investment than Seker Finansal. However, Politeknik Metal is 2.03 times more volatile than Seker Finansal Kiralama. It trades about 0.23 of its potential returns per unit of risk. Seker Finansal Kiralama is currently generating about 0.07 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Seker Finansal Kiralama
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Seker Finansal Kiralama |
Politeknik Metal and Seker Finansal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Seker Finansal
The main advantage of trading using opposite Politeknik Metal and Seker Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Seker 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 Seker Finansal will offset losses from the drop in Seker Finansal'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 |
| Seker Finansal vs. Galatasaray Sportif Sinai | Seker Finansal vs. Politeknik Metal Sanayi | Seker Finansal vs. Trabzonspor Sportif Yatirim | Seker Finansal vs. MEGA 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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