Correlation Between Kuyas Yatirim and Petrokent Turizm
Can any of the company-specific risk be diversified away by investing in both Kuyas Yatirim and Petrokent Turizm 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 Kuyas Yatirim and Petrokent Turizm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuyas Yatirim AS and Petrokent Turizm AS, you can compare the effects of market volatilities on Kuyas Yatirim and Petrokent Turizm 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 Kuyas Yatirim with a short position of Petrokent Turizm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuyas Yatirim and Petrokent Turizm.
Diversification Opportunities for Kuyas Yatirim and Petrokent Turizm
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuyas and Petrokent is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kuyas Yatirim AS and Petrokent Turizm AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrokent Turizm and Kuyas Yatirim 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 Kuyas Yatirim AS are associated (or correlated) with Petrokent Turizm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrokent Turizm has no effect on the direction of Kuyas Yatirim i.e., Kuyas Yatirim and Petrokent Turizm go up and down completely randomly.
Pair Corralation between Kuyas Yatirim and Petrokent Turizm
Assuming the 90 days trading horizon Kuyas Yatirim is expected to generate 3.27 times less return on investment than Petrokent Turizm. But when comparing it to its historical volatility, Kuyas Yatirim AS is 1.19 times less risky than Petrokent Turizm. It trades about 0.01 of its potential returns per unit of risk. Petrokent Turizm AS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 22,860 in Petrokent Turizm AS on September 14, 2024 and sell it today you would earn a total of 1,840 from holding Petrokent Turizm AS or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuyas Yatirim AS vs. Petrokent Turizm AS
Performance |
| Timeline |
| Kuyas Yatirim AS |
| Petrokent Turizm |
Kuyas Yatirim and Petrokent Turizm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuyas Yatirim and Petrokent Turizm
The main advantage of trading using opposite Kuyas Yatirim and Petrokent Turizm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuyas Yatirim position performs unexpectedly, Petrokent Turizm 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 Petrokent Turizm will offset losses from the drop in Petrokent Turizm's long position.| Kuyas Yatirim vs. Turkiye Garanti Bankasi | Kuyas Yatirim vs. Turkiye Is Bankasi | Kuyas Yatirim vs. Turkiye Is Bankasi | Kuyas Yatirim vs. Akbank TAS |
| Petrokent Turizm vs. Bms Birlesik Metal | Petrokent Turizm vs. Koza Anadolu Metal | Petrokent Turizm vs. CEO Event Medya | Petrokent Turizm vs. Creditwest Faktoring AS |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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