Correlation Between Ipek Dogal and Petkim Petrokimya
Can any of the company-specific risk be diversified away by investing in both Ipek Dogal and Petkim Petrokimya 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 Ipek Dogal and Petkim Petrokimya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ipek Dogal Enerji and Petkim Petrokimya Holding, you can compare the effects of market volatilities on Ipek Dogal and Petkim Petrokimya 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 Ipek Dogal with a short position of Petkim Petrokimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ipek Dogal and Petkim Petrokimya.
Diversification Opportunities for Ipek Dogal and Petkim Petrokimya
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ipek and Petkim is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ipek Dogal Enerji and Petkim Petrokimya Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petkim Petrokimya Holding and Ipek Dogal 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 Ipek Dogal Enerji are associated (or correlated) with Petkim Petrokimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petkim Petrokimya Holding has no effect on the direction of Ipek Dogal i.e., Ipek Dogal and Petkim Petrokimya go up and down completely randomly.
Pair Corralation between Ipek Dogal and Petkim Petrokimya
Assuming the 90 days trading horizon Ipek Dogal Enerji is expected to generate 1.38 times more return on investment than Petkim Petrokimya. However, Ipek Dogal is 1.38 times more volatile than Petkim Petrokimya Holding. It trades about 0.08 of its potential returns per unit of risk. Petkim Petrokimya Holding is currently generating about -0.15 per unit of risk. If you would invest 4,540 in Ipek Dogal Enerji on August 28, 2024 and sell it today you would earn a total of 575.00 from holding Ipek Dogal Enerji or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ipek Dogal Enerji vs. Petkim Petrokimya Holding
Performance |
| Timeline |
| Ipek Dogal Enerji |
| Petkim Petrokimya Holding |
Ipek Dogal and Petkim Petrokimya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ipek Dogal and Petkim Petrokimya
The main advantage of trading using opposite Ipek Dogal and Petkim Petrokimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ipek Dogal position performs unexpectedly, Petkim Petrokimya 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 Petkim Petrokimya will offset losses from the drop in Petkim Petrokimya's long position.| Ipek Dogal vs. Koza Anadolu Metal | Ipek Dogal vs. Koza Altin Isletmeleri | Ipek Dogal vs. Vestel Elektronik Sanayi | Ipek Dogal vs. Petkim Petrokimya Holding |
| Petkim Petrokimya vs. Turkiye Petrol Rafinerileri | Petkim Petrokimya vs. Aselsan Elektronik Sanayi | Petkim Petrokimya vs. Eregli Demir ve | Petkim Petrokimya vs. Turkish Airlines |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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