Correlation Between Trend Gayrimenkul and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Trend Gayrimenkul 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 Trend Gayrimenkul and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trend Gayrimenkul Yatirim and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Trend Gayrimenkul 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 Trend Gayrimenkul with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trend Gayrimenkul and Politeknik Metal.
Diversification Opportunities for Trend Gayrimenkul and Politeknik Metal
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trend and Politeknik is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Trend Gayrimenkul Yatirim 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 Trend Gayrimenkul 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 Trend Gayrimenkul Yatirim 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 Trend Gayrimenkul i.e., Trend Gayrimenkul and Politeknik Metal go up and down completely randomly.
Pair Corralation between Trend Gayrimenkul and Politeknik Metal
Assuming the 90 days trading horizon Trend Gayrimenkul Yatirim is expected to under-perform the Politeknik Metal. But the stock apears to be less risky and, when comparing its historical volatility, Trend Gayrimenkul Yatirim is 1.21 times less risky than Politeknik Metal. The stock trades about -0.06 of its potential returns per unit of risk. The Politeknik Metal Sanayi is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 639,750 in Politeknik Metal Sanayi on August 31, 2024 and sell it today you would earn a total of 115,500 from holding Politeknik Metal Sanayi or generate 18.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Trend Gayrimenkul Yatirim vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Trend Gayrimenkul Yatirim |
| Politeknik Metal Sanayi |
Trend Gayrimenkul and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trend Gayrimenkul and Politeknik Metal
The main advantage of trading using opposite Trend Gayrimenkul and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trend Gayrimenkul 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.| Trend Gayrimenkul vs. Brisa Bridgestone Sabanci | Trend Gayrimenkul vs. Dogus Gayrimenkul Yatirim | Trend Gayrimenkul vs. IZDEMIR Enerji Elektrik | Trend Gayrimenkul vs. Logo Yazilim Sanayi |
| Politeknik Metal vs. Trend Gayrimenkul Yatirim | Politeknik Metal vs. Trabzon Liman Isletmeciligi | Politeknik Metal vs. Halk Gayrimenkul Yatirim | Politeknik Metal vs. Inveo Yatirim Holding |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |