Correlation Between Silverline Endustri and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Silverline Endustri and Politeknik Metal 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 Silverline Endustri and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silverline Endustri ve and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Silverline Endustri and Politeknik Metal 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 Silverline Endustri with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silverline Endustri and Politeknik Metal.
Diversification Opportunities for Silverline Endustri and Politeknik Metal
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Silverline and Politeknik is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Silverline Endustri ve and Politeknik Metal Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Politeknik Metal Sanayi and Silverline Endustri 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 Silverline Endustri ve are associated (or correlated) with Politeknik Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Politeknik Metal Sanayi has no effect on the direction of Silverline Endustri i.e., Silverline Endustri and Politeknik Metal go up and down completely randomly.
Pair Corralation between Silverline Endustri and Politeknik Metal
Assuming the 90 days trading horizon Silverline Endustri is expected to generate 4.36 times less return on investment than Politeknik Metal. But when comparing it to its historical volatility, Silverline Endustri ve is 1.32 times less risky than Politeknik Metal. It trades about 0.03 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 115,684 in Politeknik Metal Sanayi on August 30, 2024 and sell it today you would earn a total of 680,816 from holding Politeknik Metal Sanayi or generate 588.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silverline Endustri ve vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Silverline Endustri |
| Politeknik Metal Sanayi |
Silverline Endustri and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silverline Endustri and Politeknik Metal
The main advantage of trading using opposite Silverline Endustri and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silverline Endustri position performs unexpectedly, Politeknik Metal 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 Politeknik Metal will offset losses from the drop in Politeknik Metal's long position.| Silverline Endustri vs. MEGA METAL | Silverline Endustri vs. Sekerbank TAS | Silverline Endustri vs. Akbank TAS | Silverline Endustri vs. ICBC Turkey Bank |
| Politeknik Metal vs. MEGA METAL | Politeknik Metal vs. ICBC Turkey Bank | Politeknik Metal vs. Gentas Genel Metal | Politeknik Metal vs. Koza Anadolu Metal |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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