Correlation Between Politeknik Metal and Aksu Enerji
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Aksu Enerji 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 Politeknik Metal and Aksu Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Politeknik Metal Sanayi and Aksu Enerji ve, you can compare the effects of market volatilities on Politeknik Metal and Aksu Enerji 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 Politeknik Metal with a short position of Aksu Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Aksu Enerji.
Diversification Opportunities for Politeknik Metal and Aksu Enerji
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Politeknik and Aksu is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Aksu Enerji ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksu Enerji ve and Politeknik Metal 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 Politeknik Metal Sanayi are associated (or correlated) with Aksu Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksu Enerji ve has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Aksu Enerji go up and down completely randomly.
Pair Corralation between Politeknik Metal and Aksu Enerji
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to under-perform the Aksu Enerji. But the stock apears to be less risky and, when comparing its historical volatility, Politeknik Metal Sanayi is 1.01 times less risky than Aksu Enerji. The stock trades about -0.04 of its potential returns per unit of risk. The Aksu Enerji ve is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,121 in Aksu Enerji ve on December 24, 2024 and sell it today you would earn a total of 465.00 from holding Aksu Enerji ve or generate 41.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Politeknik Metal Sanayi vs. Aksu Enerji ve
Performance |
Timeline |
Politeknik Metal Sanayi |
Aksu Enerji ve |
Politeknik Metal and Aksu Enerji Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Politeknik Metal and Aksu Enerji
The main advantage of trading using opposite Politeknik Metal and Aksu Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Aksu Enerji 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 Aksu Enerji will offset losses from the drop in Aksu Enerji's long position.Politeknik Metal vs. Mackolik Internet Hizmetleri | Politeknik Metal vs. KOC METALURJI | Politeknik Metal vs. Turkish Airlines | Politeknik Metal vs. Akcansa Cimento Sanayi |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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