Correlation Between Politeknik Metal and Senkron Guvenlik

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

Diversification Opportunities for Politeknik Metal and Senkron Guvenlik

-0.17

Correlation Coefficient

Politeknik Metal  Senkron Guvenlik

Good diversification

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

Pair Corralation between Politeknik Metal and Senkron Guvenlik

Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 1.04 times more return on investment than Senkron Guvenlik. However, Politeknik Metal is 1.04 times more volatile than Senkron Guvenlik ve. It trades about 0.11 of its potential returns per unit of risk. Senkron Guvenlik ve is currently generating about 0.03 per unit of risk. If you would invest  617,000  in Politeknik Metal Sanayi on October 7, 2024 and sell it today you would earn a total of  78,500  from holding Politeknik Metal Sanayi or generate 12.72% 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.  Senkron Guvenlik ve

Politeknik Metal Sanayi

Risk-Adjusted Performance

4 of 100

Insignificant

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.

Senkron Guvenlik

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Senkron Guvenlik ve are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Senkron Guvenlik may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Politeknik Metal and Senkron Guvenlik

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

The idea behind Politeknik Metal Sanayi and Senkron Guvenlik ve 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.

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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.