Correlation Between Suwen Tekstil and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Suwen Tekstil 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 Suwen Tekstil and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suwen Tekstil Sanayi and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Suwen Tekstil 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 Suwen Tekstil with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suwen Tekstil and Politeknik Metal.
Diversification Opportunities for Suwen Tekstil and Politeknik Metal
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suwen and Politeknik is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Suwen Tekstil Sanayi 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 Suwen Tekstil 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 Suwen Tekstil Sanayi 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 Suwen Tekstil i.e., Suwen Tekstil and Politeknik Metal go up and down completely randomly.
Pair Corralation between Suwen Tekstil and Politeknik Metal
Assuming the 90 days trading horizon Suwen Tekstil Sanayi is expected to generate 0.72 times more return on investment than Politeknik Metal. However, Suwen Tekstil Sanayi is 1.39 times less risky than Politeknik Metal. It trades about 0.07 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about -0.05 per unit of risk. If you would invest 1,851 in Suwen Tekstil Sanayi on September 12, 2024 and sell it today you would earn a total of 955.00 from holding Suwen Tekstil Sanayi or generate 51.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suwen Tekstil Sanayi vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Suwen Tekstil Sanayi |
| Politeknik Metal Sanayi |
Suwen Tekstil and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suwen Tekstil and Politeknik Metal
The main advantage of trading using opposite Suwen Tekstil and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suwen Tekstil 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.| Suwen Tekstil vs. Politeknik Metal Sanayi | Suwen Tekstil vs. Gentas Genel Metal | Suwen Tekstil vs. MEGA METAL | Suwen Tekstil vs. Akbank TAS |
| Politeknik Metal vs. Ayes Celik Hasir | Politeknik Metal vs. Trend Gayrimenkul Yatirim | Politeknik Metal vs. Ege Endustri ve | Politeknik Metal vs. Alarko Carrier 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world |