Correlation Between Temapol Polimer and Sekerbank TAS
Can any of the company-specific risk be diversified away by investing in both Temapol Polimer and Sekerbank TAS 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 Temapol Polimer and Sekerbank TAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Temapol Polimer Plastik and Sekerbank TAS, you can compare the effects of market volatilities on Temapol Polimer and Sekerbank TAS 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 Temapol Polimer with a short position of Sekerbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Temapol Polimer and Sekerbank TAS.
Diversification Opportunities for Temapol Polimer and Sekerbank TAS
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Temapol and Sekerbank is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Temapol Polimer Plastik and Sekerbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekerbank TAS and Temapol Polimer 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 Temapol Polimer Plastik are associated (or correlated) with Sekerbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekerbank TAS has no effect on the direction of Temapol Polimer i.e., Temapol Polimer and Sekerbank TAS go up and down completely randomly.
Pair Corralation between Temapol Polimer and Sekerbank TAS
Assuming the 90 days trading horizon Temapol Polimer Plastik is expected to under-perform the Sekerbank TAS. In addition to that, Temapol Polimer is 1.27 times more volatile than Sekerbank TAS. It trades about -0.02 of its total potential returns per unit of risk. Sekerbank TAS is currently generating about -0.01 per unit of volatility. If you would invest 572.00 in Sekerbank TAS on September 14, 2024 and sell it today you would lose (81.00) from holding Sekerbank TAS or give up 14.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Temapol Polimer Plastik vs. Sekerbank TAS
Performance |
| Timeline |
| Temapol Polimer Plastik |
| Sekerbank TAS |
Temapol Polimer and Sekerbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Temapol Polimer and Sekerbank TAS
The main advantage of trading using opposite Temapol Polimer and Sekerbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Temapol Polimer position performs unexpectedly, Sekerbank TAS 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 Sekerbank TAS will offset losses from the drop in Sekerbank TAS's long position.| Temapol Polimer vs. Sekerbank TAS | Temapol Polimer vs. Trabzonspor Sportif Yatirim | Temapol Polimer vs. Bms Birlesik Metal | Temapol Polimer vs. Datagate Bilgisayar Malzemeleri |
| Sekerbank TAS vs. Turkiye Sinai Kalkinma | Sekerbank TAS vs. Yapi ve Kredi | Sekerbank TAS vs. Kardemir Karabuk Demir | Sekerbank TAS vs. Turkiye Is Bankasi |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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