Correlation Between Politeknik Metal and Tumosan
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Tumosan 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 Tumosan 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 Tumosan Motor ve, you can compare the effects of market volatilities on Politeknik Metal and Tumosan 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 Tumosan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Tumosan.
Diversification Opportunities for Politeknik Metal and Tumosan
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Politeknik and Tumosan is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Tumosan Motor ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tumosan Motor ve 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 Tumosan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tumosan Motor ve has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Tumosan go up and down completely randomly.
Pair Corralation between Politeknik Metal and Tumosan
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 1.19 times more return on investment than Tumosan. However, Politeknik Metal is 1.19 times more volatile than Tumosan Motor ve. It trades about 0.1 of its potential returns per unit of risk. Tumosan Motor ve is currently generating about 0.05 per unit of risk. If you would invest 119,984 in Politeknik Metal Sanayi on September 3, 2024 and sell it today you would earn a total of 614,266 from holding Politeknik Metal Sanayi or generate 511.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Tumosan Motor ve
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Tumosan Motor ve |
Politeknik Metal and Tumosan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Tumosan
The main advantage of trading using opposite Politeknik Metal and Tumosan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Tumosan 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 Tumosan will offset losses from the drop in Tumosan's long position.| Politeknik Metal vs. Akcansa Cimento Sanayi | Politeknik Metal vs. Trabzonspor Sportif Yatirim | Politeknik Metal vs. Bms Birlesik Metal | Politeknik Metal vs. Koza Anadolu Metal |
| Tumosan vs. Politeknik Metal Sanayi | Tumosan vs. Akbank TAS | Tumosan vs. Turkiye Kalkinma Bankasi | Tumosan 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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