Correlation Between BIST Electricity and Politeknik Metal
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By analyzing existing cross correlation between BIST Electricity and Politeknik Metal Sanayi, you can compare the effects of market volatilities on BIST Electricity 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 BIST Electricity with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and Politeknik Metal.
Diversification Opportunities for BIST Electricity and Politeknik Metal
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BIST and Politeknik is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity 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 BIST Electricity 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 BIST Electricity 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 BIST Electricity i.e., BIST Electricity and Politeknik Metal go up and down completely randomly.
Pair Corralation between BIST Electricity and Politeknik Metal
Assuming the 90 days trading horizon BIST Electricity is expected to generate 3.56 times less return on investment than Politeknik Metal. But when comparing it to its historical volatility, BIST Electricity is 2.24 times less risky than Politeknik Metal. It trades about 0.05 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 268,383 in Politeknik Metal Sanayi on September 1, 2024 and sell it today you would earn a total of 465,867 from holding Politeknik Metal Sanayi or generate 173.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIST Electricity vs. Politeknik Metal Sanayi
Performance |
| Timeline |
BIST Electricity and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
Politeknik Metal Sanayi
Pair trading matchups for Politeknik Metal
Pair Trading with BIST Electricity and Politeknik Metal
The main advantage of trading using opposite BIST Electricity and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity 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.| BIST Electricity vs. MEGA METAL | BIST Electricity vs. Sodas Sodyum Sanayi | BIST Electricity vs. Silverline Endustri ve | BIST Electricity vs. Gentas Genel Metal |
| Politeknik Metal vs. Cuhadaroglu Metal Sanayi | Politeknik Metal vs. Creditwest Faktoring AS | Politeknik Metal vs. Galatasaray Sportif Sinai | Politeknik Metal vs. Koza Anadolu Metal |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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