Correlation Between Yesil Yatirim and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Yesil Yatirim 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 Yesil Yatirim and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yesil Yatirim Holding and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Yesil Yatirim 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 Yesil Yatirim with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yesil Yatirim and Politeknik Metal.
Diversification Opportunities for Yesil Yatirim and Politeknik Metal
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yesil and Politeknik is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Yesil Yatirim Holding 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 Yesil Yatirim 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 Yesil Yatirim Holding 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 Yesil Yatirim i.e., Yesil Yatirim and Politeknik Metal go up and down completely randomly.
Pair Corralation between Yesil Yatirim and Politeknik Metal
Assuming the 90 days trading horizon Yesil Yatirim Holding is expected to generate 1.29 times more return on investment than Politeknik Metal. However, Yesil Yatirim is 1.29 times more volatile than Politeknik Metal Sanayi. It trades about 0.61 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about 0.21 per unit of risk. If you would invest 128.00 in Yesil Yatirim Holding on September 4, 2024 and sell it today you would earn a total of 103.00 from holding Yesil Yatirim Holding or generate 80.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yesil Yatirim Holding vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Yesil Yatirim Holding |
| Politeknik Metal Sanayi |
Yesil Yatirim and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yesil Yatirim and Politeknik Metal
The main advantage of trading using opposite Yesil Yatirim and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yesil Yatirim 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.| Yesil Yatirim vs. Mackolik Internet Hizmetleri | Yesil Yatirim vs. MEGA METAL | Yesil Yatirim vs. Politeknik Metal Sanayi | Yesil Yatirim vs. Datagate Bilgisayar Malzemeleri |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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