Correlation Between Politeknik Metal and Unlu Yatirim
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Unlu Yatirim 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 Unlu Yatirim 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 Unlu Yatirim Holding, you can compare the effects of market volatilities on Politeknik Metal and Unlu Yatirim 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 Unlu Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Unlu Yatirim.
Diversification Opportunities for Politeknik Metal and Unlu Yatirim
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Politeknik and Unlu is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Unlu Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unlu Yatirim Holding 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 Unlu Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unlu Yatirim Holding has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Unlu Yatirim go up and down completely randomly.
Pair Corralation between Politeknik Metal and Unlu Yatirim
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 1.43 times more return on investment than Unlu Yatirim. However, Politeknik Metal is 1.43 times more volatile than Unlu Yatirim Holding. It trades about 0.1 of its potential returns per unit of risk. Unlu Yatirim Holding is currently generating about 0.03 per unit of risk. If you would invest 127,253 in Politeknik Metal Sanayi on September 1, 2024 and sell it today you would earn a total of 606,997 from holding Politeknik Metal Sanayi or generate 477.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Unlu Yatirim Holding
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Unlu Yatirim Holding |
Politeknik Metal and Unlu Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Unlu Yatirim
The main advantage of trading using opposite Politeknik Metal and Unlu Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Unlu Yatirim 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 Unlu Yatirim will offset losses from the drop in Unlu Yatirim's long position.| Politeknik Metal vs. Cuhadaroglu Metal Sanayi | Politeknik Metal vs. Creditwest Faktoring AS | Politeknik Metal vs. Galatasaray Sportif Sinai | Politeknik Metal vs. Koza Anadolu Metal |
| Unlu Yatirim vs. Politeknik Metal Sanayi | Unlu Yatirim vs. Qnb Finansbank AS | Unlu Yatirim vs. Gentas Genel Metal | Unlu Yatirim 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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