Correlation Between Mazhar Zorlu and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both Mazhar Zorlu 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 Mazhar Zorlu and Turkiye Petrol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mazhar Zorlu Holding and Turkiye Petrol Rafinerileri, you can compare the effects of market volatilities on Mazhar Zorlu 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 Mazhar Zorlu with a short position of Turkiye Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mazhar Zorlu and Turkiye Petrol.
Diversification Opportunities for Mazhar Zorlu and Turkiye Petrol
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mazhar and Turkiye is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mazhar Zorlu Holding 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 Mazhar Zorlu 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 Mazhar Zorlu Holding 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 Mazhar Zorlu i.e., Mazhar Zorlu and Turkiye Petrol go up and down completely randomly.
Pair Corralation between Mazhar Zorlu and Turkiye Petrol
Assuming the 90 days trading horizon Mazhar Zorlu Holding is expected to under-perform the Turkiye Petrol. In addition to that, Mazhar Zorlu is 1.4 times more volatile than Turkiye Petrol Rafinerileri. It trades about -0.02 of its total potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about 0.04 per unit of volatility. If you would invest 13,018 in Turkiye Petrol Rafinerileri on September 4, 2024 and sell it today you would earn a total of 1,852 from holding Turkiye Petrol Rafinerileri or generate 14.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mazhar Zorlu Holding vs. Turkiye Petrol Rafinerileri
Performance |
| Timeline |
| Mazhar Zorlu Holding |
| Turkiye Petrol Rafin |
Mazhar Zorlu and Turkiye Petrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mazhar Zorlu and Turkiye Petrol
The main advantage of trading using opposite Mazhar Zorlu and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mazhar Zorlu 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.| Mazhar Zorlu vs. Turkiye Petrol Rafinerileri | Mazhar Zorlu vs. Arcelik AS | Mazhar Zorlu vs. Turkiye Garanti Bankasi | Mazhar Zorlu vs. Akbank TAS |
| 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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