Correlation Between Datagate Bilgisayar and Politeknik Metal

Can any of the company-specific risk be diversified away by investing in both Datagate Bilgisayar 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 Datagate Bilgisayar and Politeknik Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Datagate Bilgisayar Malzemeleri and Politeknik Metal Sanayi, you can compare the effects of market volatilities on Datagate Bilgisayar 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 Datagate Bilgisayar with a short position of Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datagate Bilgisayar and Politeknik Metal.

Diversification Opportunities for Datagate Bilgisayar and Politeknik Metal

-0.54

Correlation Coefficient

Datagate Bilgisayar  Politeknik Metal

Excellent diversification

The 3 months correlation between Datagate and Politeknik is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Datagate Bilgisayar Malzemeler 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 Datagate Bilgisayar 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 Datagate Bilgisayar Malzemeleri 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 Datagate Bilgisayar i.e., Datagate Bilgisayar and Politeknik Metal go up and down completely randomly.

Pair Corralation between Datagate Bilgisayar and Politeknik Metal

Assuming the 90 days trading horizon Datagate Bilgisayar Malzemeleri is expected to generate 1.67 times more return on investment than Politeknik Metal. However, Datagate Bilgisayar is 1.67 times more volatile than Politeknik Metal Sanayi. It trades about 0.19 of its potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about -0.04 per unit of risk. If you would invest  4,930  in Datagate Bilgisayar Malzemeleri on April 22, 2025 and sell it today you would earn a total of  2,705  from holding Datagate Bilgisayar Malzemeleri or generate 54.87% return on investment over 90 days.

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

Datagate Bilgisayar Malzemeler  vs.  Politeknik Metal Sanayi

Datagate Bilgisayar

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Datagate Bilgisayar Malzemeleri are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Datagate Bilgisayar demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Politeknik Metal Sanayi

Risk-Adjusted Performance

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 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 Datagate Bilgisayar and Politeknik Metal

The main advantage of trading using opposite Datagate Bilgisayar and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datagate Bilgisayar 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.

The idea behind Datagate Bilgisayar Malzemeleri and Politeknik Metal Sanayi 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.