Correlation Between Koza Anadolu and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both Koza 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 Koza 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 Koza Anadolu Metal and Turkiye Petrol Rafinerileri, you can compare the effects of market volatilities on Koza 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 Koza Anadolu with a short position of Turkiye Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Turkiye Petrol.
Diversification Opportunities for Koza Anadolu and Turkiye Petrol
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koza and Turkiye is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal 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 Koza 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 Koza Anadolu Metal 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 Koza Anadolu i.e., Koza Anadolu and Turkiye Petrol go up and down completely randomly.
Pair Corralation between Koza Anadolu and Turkiye Petrol
Assuming the 90 days trading horizon Koza Anadolu is expected to generate 13.04 times less return on investment than Turkiye Petrol. But when comparing it to its historical volatility, Koza Anadolu Metal is 9.57 times less risky than Turkiye Petrol. It trades about 0.03 of its potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,845 in Turkiye Petrol Rafinerileri on August 30, 2024 and sell it today you would earn a total of 9,805 from holding Turkiye Petrol Rafinerileri or generate 202.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Turkiye Petrol Rafinerileri
Performance |
| Timeline |
| Koza Anadolu Metal |
| Turkiye Petrol Rafin |
Koza Anadolu and Turkiye Petrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Turkiye Petrol
The main advantage of trading using opposite Koza Anadolu and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza 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.| Koza Anadolu vs. Is Yatirim Ortakligi | Koza Anadolu vs. Euro Kapital Yatirim | Koza Anadolu vs. Atlas Menkul Kiymetler | Koza Anadolu vs. Dogus Gayrimenkul Yatirim |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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