Correlation Between Ege Endustri and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both Ege Endustri 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 Ege Endustri and Turkiye Petrol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ege Endustri ve and Turkiye Petrol Rafinerileri, you can compare the effects of market volatilities on Ege Endustri 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 Ege Endustri with a short position of Turkiye Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Endustri and Turkiye Petrol.
Diversification Opportunities for Ege Endustri and Turkiye Petrol
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ege and Turkiye is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ege Endustri ve 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 Ege Endustri 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 Ege Endustri ve 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 Ege Endustri i.e., Ege Endustri and Turkiye Petrol go up and down completely randomly.
Pair Corralation between Ege Endustri and Turkiye Petrol
Assuming the 90 days trading horizon Ege Endustri ve is expected to generate 1.02 times more return on investment than Turkiye Petrol. However, Ege Endustri is 1.02 times more volatile than Turkiye Petrol Rafinerileri. It trades about -0.11 of its potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about -0.15 per unit of risk. If you would invest 921,500 in Ege Endustri ve on December 6, 2024 and sell it today you would lose (41,500) from holding Ege Endustri ve or give up 4.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ege Endustri ve vs. Turkiye Petrol Rafinerileri
Performance |
| Timeline |
| Ege Endustri ve |
| Turkiye Petrol Rafin |
Ege Endustri and Turkiye Petrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Endustri and Turkiye Petrol
The main advantage of trading using opposite Ege Endustri and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Endustri 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.| Ege Endustri vs. Ford Otomotiv Sanayi | ||
| Ege Endustri vs. Tofas Turk Otomobil | ||
| Ege Endustri vs. Hektas Ticaret TAS | ||
| Ege Endustri vs. Eregli Demir ve |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |