Correlation Between SASA Polyester and Izmir Demir
Can any of the company-specific risk be diversified away by investing in both SASA Polyester and Izmir Demir 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 Izmir Demir 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 Izmir Demir Celik, you can compare the effects of market volatilities on SASA Polyester and Izmir Demir 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 Izmir Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASA Polyester and Izmir Demir.
Diversification Opportunities for SASA Polyester and Izmir Demir
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SASA and Izmir is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester Sanayi and Izmir Demir Celik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Izmir Demir Celik 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 Izmir Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Izmir Demir Celik has no effect on the direction of SASA Polyester i.e., SASA Polyester and Izmir Demir go up and down completely randomly.
Pair Corralation between SASA Polyester and Izmir Demir
Assuming the 90 days trading horizon SASA Polyester Sanayi is expected to generate 1.53 times more return on investment than Izmir Demir. However, SASA Polyester is 1.53 times more volatile than Izmir Demir Celik. It trades about 0.1 of its potential returns per unit of risk. Izmir Demir Celik is currently generating about -0.08 per unit of risk. If you would invest 396.00 in SASA Polyester Sanayi on August 31, 2024 and sell it today you would earn a total of 20.00 from holding SASA Polyester Sanayi or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SASA Polyester Sanayi vs. Izmir Demir Celik
Performance |
| Timeline |
| SASA Polyester Sanayi |
| Izmir Demir Celik |
SASA Polyester and Izmir Demir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASA Polyester and Izmir Demir
The main advantage of trading using opposite SASA Polyester and Izmir Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASA Polyester position performs unexpectedly, Izmir Demir 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 Izmir Demir will offset losses from the drop in Izmir Demir'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 |
| Izmir Demir vs. Trend Gayrimenkul Yatirim | Izmir Demir vs. Trabzon Liman Isletmeciligi | Izmir Demir vs. Halk Gayrimenkul Yatirim | Izmir Demir vs. Inveo Yatirim Holding |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |