Correlation Between Politeknik Metal and Verusa Holding
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Verusa Holding 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 Verusa Holding 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 Verusa Holding AS, you can compare the effects of market volatilities on Politeknik Metal and Verusa Holding 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 Verusa Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Verusa Holding.
Diversification Opportunities for Politeknik Metal and Verusa Holding
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Politeknik and Verusa is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Verusa Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verusa Holding AS 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 Verusa Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verusa Holding AS has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Verusa Holding go up and down completely randomly.
Pair Corralation between Politeknik Metal and Verusa Holding
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 1.45 times more return on investment than Verusa Holding. However, Politeknik Metal is 1.45 times more volatile than Verusa Holding AS. It trades about 0.18 of its potential returns per unit of risk. Verusa Holding AS is currently generating about 0.07 per unit of risk. If you would invest 613,250 in Politeknik Metal Sanayi on September 13, 2024 and sell it today you would earn a total of 86,750 from holding Politeknik Metal Sanayi or generate 14.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Verusa Holding AS
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Verusa Holding AS |
Politeknik Metal and Verusa Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Verusa Holding
The main advantage of trading using opposite Politeknik Metal and Verusa Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Verusa Holding 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 Verusa Holding will offset losses from the drop in Verusa Holding'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 |
| Verusa Holding vs. Datagate Bilgisayar Malzemeleri | Verusa Holding vs. Creditwest Faktoring AS | Verusa Holding vs. Cuhadaroglu Metal Sanayi | Verusa Holding vs. ICBC Turkey Bank |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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