Correlation Between Politeknik Metal and Viking Kagit
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Viking Kagit 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 Viking Kagit 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 Viking Kagit ve, you can compare the effects of market volatilities on Politeknik Metal and Viking Kagit 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 Viking Kagit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Viking Kagit.
Diversification Opportunities for Politeknik Metal and Viking Kagit
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Politeknik and Viking is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Viking Kagit ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Kagit 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 Viking Kagit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Kagit ve has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Viking Kagit go up and down completely randomly.
Pair Corralation between Politeknik Metal and Viking Kagit
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 0.81 times more return on investment than Viking Kagit. However, Politeknik Metal Sanayi is 1.24 times less risky than Viking Kagit. It trades about 0.05 of its potential returns per unit of risk. Viking Kagit ve is currently generating about -0.1 per unit of risk. If you would invest 643,000 in Politeknik Metal Sanayi on August 27, 2024 and sell it today you would earn a total of 9,500 from holding Politeknik Metal Sanayi or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. Viking Kagit ve
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| Viking Kagit ve |
Politeknik Metal and Viking Kagit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and Viking Kagit
The main advantage of trading using opposite Politeknik Metal and Viking Kagit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Viking Kagit 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 Viking Kagit will offset losses from the drop in Viking Kagit's long position.| Politeknik Metal vs. Creditwest Faktoring AS | Politeknik Metal vs. E Data Teknoloji Pazarlama | Politeknik Metal vs. Silverline Endustri ve | Politeknik Metal vs. Sodas Sodyum Sanayi |
| Viking Kagit vs. Silverline Endustri ve | Viking Kagit vs. Borlease Otomotiv AS | Viking Kagit vs. Datagate Bilgisayar Malzemeleri | Viking Kagit vs. E Data Teknoloji Pazarlama |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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