Correlation Between SASA Polyester and Gubre Fabrikalari
Can any of the company-specific risk be diversified away by investing in both SASA Polyester and Gubre Fabrikalari 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 SASA Polyester and Gubre Fabrikalari into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SASA Polyester Sanayi and Gubre Fabrikalari TAS, you can compare the effects of market volatilities on SASA Polyester and Gubre Fabrikalari 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 SASA Polyester with a short position of Gubre Fabrikalari. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASA Polyester and Gubre Fabrikalari.
Diversification Opportunities for SASA Polyester and Gubre Fabrikalari
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SASA and Gubre is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester Sanayi and Gubre Fabrikalari TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gubre Fabrikalari TAS and SASA Polyester 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 SASA Polyester Sanayi are associated (or correlated) with Gubre Fabrikalari. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gubre Fabrikalari TAS has no effect on the direction of SASA Polyester i.e., SASA Polyester and Gubre Fabrikalari go up and down completely randomly.
Pair Corralation between SASA Polyester and Gubre Fabrikalari
Assuming the 90 days trading horizon SASA Polyester Sanayi is expected to under-perform the Gubre Fabrikalari. But the stock apears to be less risky and, when comparing its historical volatility, SASA Polyester Sanayi is 1.12 times less risky than Gubre Fabrikalari. The stock trades about -0.06 of its potential returns per unit of risk. The Gubre Fabrikalari TAS is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 14,590 in Gubre Fabrikalari TAS on September 12, 2024 and sell it today you would earn a total of 12,235 from holding Gubre Fabrikalari TAS or generate 83.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SASA Polyester Sanayi vs. Gubre Fabrikalari TAS
Performance |
| Timeline |
| SASA Polyester Sanayi |
| Gubre Fabrikalari TAS |
SASA Polyester and Gubre Fabrikalari Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASA Polyester and Gubre Fabrikalari
The main advantage of trading using opposite SASA Polyester and Gubre Fabrikalari positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASA Polyester position performs unexpectedly, Gubre Fabrikalari 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 Gubre Fabrikalari will offset losses from the drop in Gubre Fabrikalari's long position.| SASA Polyester vs. Hektas Ticaret TAS | SASA Polyester vs. Eregli Demir ve | SASA Polyester vs. Turkiye Sise ve | SASA Polyester vs. Turkiye Petrol Rafinerileri |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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