Correlation Between Aksa Akrilik and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both Aksa Akrilik 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 Aksa Akrilik and Turkiye Petrol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aksa Akrilik Kimya and Turkiye Petrol Rafinerileri, you can compare the effects of market volatilities on Aksa Akrilik 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 Aksa Akrilik with a short position of Turkiye Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Akrilik and Turkiye Petrol.
Diversification Opportunities for Aksa Akrilik and Turkiye Petrol
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aksa and Turkiye is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Akrilik Kimya 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 Aksa Akrilik 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 Aksa Akrilik Kimya 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 Aksa Akrilik i.e., Aksa Akrilik and Turkiye Petrol go up and down completely randomly.
Pair Corralation between Aksa Akrilik and Turkiye Petrol
Assuming the 90 days trading horizon Aksa Akrilik Kimya is expected to generate 1.52 times more return on investment than Turkiye Petrol. However, Aksa Akrilik is 1.52 times more volatile than Turkiye Petrol Rafinerileri. It trades about 0.36 of its potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about -0.43 per unit of risk. If you would invest 1,097 in Aksa Akrilik Kimya on November 28, 2024 and sell it today you would earn a total of 187.00 from holding Aksa Akrilik Kimya or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aksa Akrilik Kimya vs. Turkiye Petrol Rafinerileri
Performance |
| Timeline |
| Aksa Akrilik Kimya |
| Turkiye Petrol Rafin |
Aksa Akrilik and Turkiye Petrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aksa Akrilik and Turkiye Petrol
The main advantage of trading using opposite Aksa Akrilik and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aksa Akrilik 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.| Aksa Akrilik vs. Eregli Demir ve | Aksa Akrilik vs. Turkiye Sise ve | Aksa Akrilik vs. Tofas Turk Otomobil | Aksa Akrilik vs. Ford Otomotiv Sanayi |
| Turkiye Petrol vs. Eregli Demir ve | Turkiye Petrol vs. Turkiye Sise ve | Turkiye Petrol vs. Turkish Airlines | 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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