Correlation Between Politeknik Metal and Tukas Gida
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Tukas 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 Tukas 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 Tukas Gida Sanayi, you can compare the effects of market volatilities on Politeknik Metal and Tukas 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 Tukas Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Tukas Gida.
Diversification Opportunities for Politeknik Metal and Tukas Gida
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Politeknik and Tukas is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Tukas Gida Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tukas 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 Tukas Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tukas Gida Sanayi has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Tukas Gida go up and down completely randomly.
Pair Corralation between Politeknik Metal and Tukas Gida
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 1.44 times more return on investment than Tukas Gida. However, Politeknik Metal is 1.44 times more volatile than Tukas Gida Sanayi. It trades about -0.11 of its potential returns per unit of risk. Tukas Gida Sanayi is currently generating about -0.24 per unit of risk. If you would invest 690,250 in Politeknik Metal Sanayi on November 28, 2024 and sell it today you would lose (56,500) from holding Politeknik Metal Sanayi or give up 8.19% 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. Tukas Gida Sanayi
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Tukas Gida Sanayi |
Politeknik Metal and Tukas Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Tukas Gida
The main advantage of trading using opposite Politeknik Metal and Tukas Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Tukas 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 Tukas Gida will offset losses from the drop in Tukas Gida's long position.| Politeknik Metal vs. Mackolik Internet Hizmetleri | Politeknik Metal vs. Sodas Sodyum Sanayi | Politeknik Metal vs. Koza Anadolu Metal | Politeknik Metal vs. Gentas Genel Metal |
| Tukas Gida vs. Gentas Genel Metal | Tukas Gida vs. MEGA METAL | Tukas Gida vs. KOC METALURJI | Tukas Gida vs. Politeknik Metal Sanayi |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |