Correlation Between SASA Polyester and ODAS Elektrik
Can any of the company-specific risk be diversified away by investing in both SASA Polyester and ODAS Elektrik 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 ODAS Elektrik 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 ODAS Elektrik Uretim, you can compare the effects of market volatilities on SASA Polyester and ODAS Elektrik 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 ODAS Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASA Polyester and ODAS Elektrik.
Diversification Opportunities for SASA Polyester and ODAS Elektrik
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SASA and ODAS is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester Sanayi and ODAS Elektrik Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ODAS Elektrik Uretim 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 ODAS Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ODAS Elektrik Uretim has no effect on the direction of SASA Polyester i.e., SASA Polyester and ODAS Elektrik go up and down completely randomly.
Pair Corralation between SASA Polyester and ODAS Elektrik
Assuming the 90 days trading horizon SASA Polyester Sanayi is expected to generate 1.08 times more return on investment than ODAS Elektrik. However, SASA Polyester is 1.08 times more volatile than ODAS Elektrik Uretim. It trades about 0.23 of its potential returns per unit of risk. ODAS Elektrik Uretim is currently generating about 0.13 per unit of risk. If you would invest 384.00 in SASA Polyester Sanayi on September 15, 2024 and sell it today you would earn a total of 48.00 from holding SASA Polyester Sanayi or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SASA Polyester Sanayi vs. ODAS Elektrik Uretim
Performance |
| Timeline |
| SASA Polyester Sanayi |
| ODAS Elektrik Uretim |
SASA Polyester and ODAS Elektrik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASA Polyester and ODAS Elektrik
The main advantage of trading using opposite SASA Polyester and ODAS Elektrik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASA Polyester position performs unexpectedly, ODAS Elektrik 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 ODAS Elektrik will offset losses from the drop in ODAS Elektrik's long position.| SASA Polyester vs. Ayes Celik Hasir | SASA Polyester vs. Trend Gayrimenkul Yatirim | SASA Polyester vs. Ege Endustri ve | SASA Polyester vs. Alarko Carrier Sanayi |
| ODAS Elektrik vs. Aksa Enerji Uretim | ODAS Elektrik vs. Hektas Ticaret TAS | ODAS Elektrik vs. Turkiye Sise ve | ODAS Elektrik vs. SASA Polyester Sanayi |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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