Correlation Between Sekerbank TAS and Temapol Polimer
Can any of the company-specific risk be diversified away by investing in both Sekerbank TAS and Temapol Polimer 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 Sekerbank TAS and Temapol Polimer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sekerbank TAS and Temapol Polimer Plastik, you can compare the effects of market volatilities on Sekerbank TAS and Temapol Polimer 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 Sekerbank TAS with a short position of Temapol Polimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekerbank TAS and Temapol Polimer.
Diversification Opportunities for Sekerbank TAS and Temapol Polimer
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sekerbank and Temapol is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS and Temapol Polimer Plastik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Temapol Polimer Plastik and Sekerbank TAS 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 Sekerbank TAS are associated (or correlated) with Temapol Polimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Temapol Polimer Plastik has no effect on the direction of Sekerbank TAS i.e., Sekerbank TAS and Temapol Polimer go up and down completely randomly.
Pair Corralation between Sekerbank TAS and Temapol Polimer
Assuming the 90 days trading horizon Sekerbank TAS is expected to generate 1.42 times more return on investment than Temapol Polimer. However, Sekerbank TAS is 1.42 times more volatile than Temapol Polimer Plastik. It trades about 0.27 of its potential returns per unit of risk. Temapol Polimer Plastik is currently generating about 0.21 per unit of risk. If you would invest 426.00 in Sekerbank TAS on September 14, 2024 and sell it today you would earn a total of 73.00 from holding Sekerbank TAS or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sekerbank TAS vs. Temapol Polimer Plastik
Performance |
| Timeline |
| Sekerbank TAS |
| Temapol Polimer Plastik |
Sekerbank TAS and Temapol Polimer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sekerbank TAS and Temapol Polimer
The main advantage of trading using opposite Sekerbank TAS and Temapol Polimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekerbank TAS position performs unexpectedly, Temapol Polimer 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 Temapol Polimer will offset losses from the drop in Temapol Polimer's long position.| Sekerbank TAS vs. Turkiye Sinai Kalkinma | Sekerbank TAS vs. Yapi ve Kredi | Sekerbank TAS vs. Kardemir Karabuk Demir | Sekerbank TAS vs. Turkiye Is Bankasi |
| Temapol Polimer vs. Sekerbank TAS | Temapol Polimer vs. Trabzonspor Sportif Yatirim | Temapol Polimer vs. Bms Birlesik Metal | Temapol Polimer vs. Datagate Bilgisayar Malzemeleri |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |