Correlation Between SASA Polyester and Pergamon Status
Can any of the company-specific risk be diversified away by investing in both SASA Polyester and Pergamon Status 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 Pergamon Status 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 Pergamon Status Dis, you can compare the effects of market volatilities on SASA Polyester and Pergamon Status 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 Pergamon Status. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASA Polyester and Pergamon Status.
Diversification Opportunities for SASA Polyester and Pergamon Status
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SASA and Pergamon is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester Sanayi and Pergamon Status Dis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pergamon Status Dis 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 Pergamon Status. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pergamon Status Dis has no effect on the direction of SASA Polyester i.e., SASA Polyester and Pergamon Status go up and down completely randomly.
Pair Corralation between SASA Polyester and Pergamon Status
Assuming the 90 days trading horizon SASA Polyester Sanayi is expected to generate 0.67 times more return on investment than Pergamon Status. However, SASA Polyester Sanayi is 1.49 times less risky than Pergamon Status. It trades about 0.15 of its potential returns per unit of risk. Pergamon Status Dis is currently generating about -0.55 per unit of risk. If you would invest 393.00 in SASA Polyester Sanayi on August 28, 2024 and sell it today you would earn a total of 30.00 from holding SASA Polyester Sanayi or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
SASA Polyester Sanayi vs. Pergamon Status Dis
Performance |
| Timeline |
| SASA Polyester Sanayi |
| Pergamon Status Dis |
SASA Polyester and Pergamon Status Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASA Polyester and Pergamon Status
The main advantage of trading using opposite SASA Polyester and Pergamon Status positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASA Polyester position performs unexpectedly, Pergamon Status 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 Pergamon Status will offset losses from the drop in Pergamon Status' long position.| SASA Polyester vs. Qnb Finansbank AS | SASA Polyester vs. QNB Finans Finansal | SASA Polyester vs. Turkiye Kalkinma Bankasi | SASA Polyester vs. Kocaer Celik Sanayi |
| Pergamon Status vs. SASA Polyester Sanayi | Pergamon Status vs. Hektas Ticaret TAS | Pergamon Status vs. Aksa Enerji Uretim | Pergamon Status vs. Ford Otomotiv 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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