Correlation Between Turkiye Is and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both Turkiye Is 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 Turkiye Is and Turkiye Petrol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Is Bankasi and Turkiye Petrol Rafinerileri, you can compare the effects of market volatilities on Turkiye Is 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 Turkiye Is with a short position of Turkiye Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and Turkiye Petrol.
Diversification Opportunities for Turkiye Is and Turkiye Petrol
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and Turkiye is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi 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 Turkiye Is 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 Turkiye Is Bankasi 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 Turkiye Is i.e., Turkiye Is and Turkiye Petrol go up and down completely randomly.
Pair Corralation between Turkiye Is and Turkiye Petrol
Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to generate 1.12 times more return on investment than Turkiye Petrol. However, Turkiye Is is 1.12 times more volatile than Turkiye Petrol Rafinerileri. It trades about -0.13 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 54,000,000 in Turkiye Is Bankasi on December 6, 2024 and sell it today you would lose (3,100,000) from holding Turkiye Is Bankasi or give up 5.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Is Bankasi vs. Turkiye Petrol Rafinerileri
Performance |
| Timeline |
| Turkiye Is Bankasi |
| Turkiye Petrol Rafin |
Turkiye Is and Turkiye Petrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Is and Turkiye Petrol
The main advantage of trading using opposite Turkiye Is and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Is 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.| Turkiye Is vs. Akcansa Cimento Sanayi | ||
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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