Correlation Between Tumosan and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Tumosan 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 Tumosan and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tumosan Motor ve and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Tumosan 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 Tumosan with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tumosan and Politeknik Metal.
Diversification Opportunities for Tumosan and Politeknik Metal
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tumosan and Politeknik is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Tumosan Motor 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 Tumosan 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 Tumosan Motor 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 Tumosan i.e., Tumosan and Politeknik Metal go up and down completely randomly.
Pair Corralation between Tumosan and Politeknik Metal
Assuming the 90 days trading horizon Tumosan Motor ve is expected to generate 0.84 times more return on investment than Politeknik Metal. However, Tumosan Motor ve is 1.19 times less risky than Politeknik Metal. It trades about 0.02 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about 0.0 per unit of risk. If you would invest 10,670 in Tumosan Motor ve on September 4, 2024 and sell it today you would earn a total of 690.00 from holding Tumosan Motor ve or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tumosan Motor ve vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Tumosan Motor ve |
| Politeknik Metal Sanayi |
Tumosan and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tumosan and Politeknik Metal
The main advantage of trading using opposite Tumosan and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tumosan 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.| Tumosan vs. Akcansa Cimento Sanayi | Tumosan vs. MEGA METAL | Tumosan vs. E Data Teknoloji Pazarlama | Tumosan vs. Koza Anadolu Metal |
| Politeknik Metal vs. Qnb Finansbank AS | Politeknik Metal vs. Turkiye Kalkinma Bankasi | Politeknik Metal vs. Kocaer Celik Sanayi | Politeknik Metal vs. Cimentas Izmir Cimento |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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