Correlation Between AG Anadolu and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both AG Anadolu and Turkiye Petrol 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 AG Anadolu and Turkiye Petrol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AG Anadolu Group and Turkiye Petrol Rafinerileri, you can compare the effects of market volatilities on AG Anadolu and Turkiye Petrol 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 AG Anadolu with a short position of Turkiye Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Anadolu and Turkiye Petrol.
Diversification Opportunities for AG Anadolu and Turkiye Petrol
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AGHOL and Turkiye is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Turkiye Petrol Rafinerileri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Petrol Rafin and AG Anadolu 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 AG Anadolu Group are associated (or correlated) with Turkiye Petrol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Petrol Rafin has no effect on the direction of AG Anadolu i.e., AG Anadolu and Turkiye Petrol go up and down completely randomly.
Pair Corralation between AG Anadolu and Turkiye Petrol
Assuming the 90 days trading horizon AG Anadolu Group is expected to generate 1.87 times more return on investment than Turkiye Petrol. However, AG Anadolu is 1.87 times more volatile than Turkiye Petrol Rafinerileri. It trades about 0.24 of its potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about 0.01 per unit of risk. If you would invest 29,100 in AG Anadolu Group on August 26, 2024 and sell it today you would earn a total of 4,300 from holding AG Anadolu Group or generate 14.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AG Anadolu Group vs. Turkiye Petrol Rafinerileri
Performance |
| Timeline |
| AG Anadolu Group |
| Turkiye Petrol Rafin |
AG Anadolu and Turkiye Petrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Anadolu and Turkiye Petrol
The main advantage of trading using opposite AG Anadolu and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Anadolu position performs unexpectedly, Turkiye Petrol 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 Turkiye Petrol will offset losses from the drop in Turkiye Petrol's long position.The idea behind AG Anadolu Group and Turkiye Petrol Rafinerileri 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.| Turkiye Petrol vs. Koza Anadolu Metal | Turkiye Petrol vs. Koza Altin Isletmeleri | Turkiye Petrol vs. Vestel Elektronik Sanayi | Turkiye Petrol vs. Petkim Petrokimya Holding |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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