Correlation Between Stellar and Kimteks Poliuretan
Can any of the company-specific risk be diversified away by investing in both Stellar and Kimteks Poliuretan 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 Stellar and Kimteks Poliuretan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stellar and Kimteks Poliuretan Sanayi, you can compare the effects of market volatilities on Stellar and Kimteks Poliuretan 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 Stellar with a short position of Kimteks Poliuretan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellar and Kimteks Poliuretan.
Diversification Opportunities for Stellar and Kimteks Poliuretan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stellar and Kimteks is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Stellar and Kimteks Poliuretan Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimteks Poliuretan Sanayi and Stellar 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 Stellar are associated (or correlated) with Kimteks Poliuretan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimteks Poliuretan Sanayi has no effect on the direction of Stellar i.e., Stellar and Kimteks Poliuretan go up and down completely randomly.
Pair Corralation between Stellar and Kimteks Poliuretan
Assuming the 90 days trading horizon Stellar is expected to generate 4.33 times more return on investment than Kimteks Poliuretan. However, Stellar is 4.33 times more volatile than Kimteks Poliuretan Sanayi. It trades about 0.19 of its potential returns per unit of risk. Kimteks Poliuretan Sanayi is currently generating about -0.08 per unit of risk. If you would invest 9.16 in Stellar on November 2, 2024 and sell it today you would earn a total of 33.84 from holding Stellar or generate 369.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.07% |
| Values | Daily Returns |
Stellar vs. Kimteks Poliuretan Sanayi
Performance |
| Timeline |
| Stellar |
| Kimteks Poliuretan Sanayi |
Stellar and Kimteks Poliuretan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellar and Kimteks Poliuretan
The main advantage of trading using opposite Stellar and Kimteks Poliuretan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellar position performs unexpectedly, Kimteks Poliuretan 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 Kimteks Poliuretan will offset losses from the drop in Kimteks Poliuretan's long position.The idea behind Stellar and Kimteks Poliuretan Sanayi pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Kimteks Poliuretan vs. Gentas Genel Metal | Kimteks Poliuretan vs. E Data Teknoloji Pazarlama | Kimteks Poliuretan vs. Politeknik Metal Sanayi | Kimteks Poliuretan vs. Sodas Sodyum 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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