Correlation Between Politeknik Metal and Saray Matbaacilik

Can any of the company-specific risk be diversified away by investing in both Politeknik Metal and Saray Matbaacilik 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 Saray Matbaacilik 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 Saray Matbaacilik Kagitcilik, you can compare the effects of market volatilities on Politeknik Metal and Saray Matbaacilik 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 Saray Matbaacilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and Saray Matbaacilik.

Diversification Opportunities for Politeknik Metal and Saray Matbaacilik

-0.17

Correlation Coefficient

Politeknik Metal  Saray Matbaacilik

Good diversification

The 3 months correlation between Politeknik and Saray is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Saray Matbaacilik Kagitcilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saray Matbaacilik 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 Saray Matbaacilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saray Matbaacilik has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Saray Matbaacilik go up and down completely randomly.

Pair Corralation between Politeknik Metal and Saray Matbaacilik

Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to under-perform the Saray Matbaacilik. In addition to that, Politeknik Metal is 1.07 times more volatile than Saray Matbaacilik Kagitcilik. It trades about -0.14 of its total potential returns per unit of risk. Saray Matbaacilik Kagitcilik is currently generating about 0.05 per unit of volatility. If you would invest  1,892  in Saray Matbaacilik Kagitcilik on October 9, 2024 and sell it today you would earn a total of  30.00  from holding Saray Matbaacilik Kagitcilik or generate 1.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Politeknik Metal Sanayi  vs.  Saray Matbaacilik Kagitcilik

Politeknik Metal Sanayi

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Politeknik Metal Sanayi are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Politeknik Metal may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Saray Matbaacilik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saray Matbaacilik Kagitcilik has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Politeknik Metal and Saray Matbaacilik

The main advantage of trading using opposite Politeknik Metal and Saray Matbaacilik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal position performs unexpectedly, Saray Matbaacilik 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 Saray Matbaacilik will offset losses from the drop in Saray Matbaacilik's long position.

The idea behind Politeknik Metal Sanayi and Saray Matbaacilik Kagitcilik 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.

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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.