Correlation Between Politeknik Metal and Aciselsan Acipayam

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

Diversification Opportunities for Politeknik Metal and Aciselsan Acipayam

0.44

Correlation Coefficient

Politeknik Metal  Aciselsan Acipayam

Very weak diversification

The 3 months correlation between Politeknik and Aciselsan is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi and Aciselsan Acipayam Seluloz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aciselsan Acipayam 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 Aciselsan Acipayam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aciselsan Acipayam has no effect on the direction of Politeknik Metal i.e., Politeknik Metal and Aciselsan Acipayam go up and down completely randomly.

Pair Corralation between Politeknik Metal and Aciselsan Acipayam

Assuming the 90 days trading horizon Politeknik Metal is expected to generate 8.56 times less return on investment than Aciselsan Acipayam. In addition to that, Politeknik Metal is 1.23 times more volatile than Aciselsan Acipayam Seluloz. It trades about 0.0 of its total potential returns per unit of risk. Aciselsan Acipayam Seluloz is currently generating about 0.04 per unit of volatility. If you would invest  12,048  in Aciselsan Acipayam Seluloz on September 14, 2024 and sell it today you would earn a total of  522.00  from holding Aciselsan Acipayam Seluloz or generate 4.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Politeknik Metal Sanayi  vs.  Aciselsan Acipayam Seluloz

Politeknik Metal Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Politeknik Metal Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Politeknik Metal is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Aciselsan Acipayam

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aciselsan Acipayam Seluloz are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Aciselsan Acipayam is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Politeknik Metal and Aciselsan Acipayam

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

The idea behind Politeknik Metal Sanayi and Aciselsan Acipayam Seluloz 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.