Correlation Between Otokar Otomotiv and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both Otokar Otomotiv 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 Otokar Otomotiv and Turkiye Petrol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Otokar Otomotiv ve and Turkiye Petrol Rafinerileri, you can compare the effects of market volatilities on Otokar Otomotiv 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 Otokar Otomotiv with a short position of Turkiye Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Otokar Otomotiv and Turkiye Petrol.
Diversification Opportunities for Otokar Otomotiv and Turkiye Petrol
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Otokar and Turkiye is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Otokar Otomotiv ve 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 Otokar Otomotiv 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 Otokar Otomotiv ve 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 Otokar Otomotiv i.e., Otokar Otomotiv and Turkiye Petrol go up and down completely randomly.
Pair Corralation between Otokar Otomotiv and Turkiye Petrol
Assuming the 90 days trading horizon Otokar Otomotiv ve is expected to generate 0.96 times more return on investment than Turkiye Petrol. However, Otokar Otomotiv ve is 1.04 times less risky than Turkiye Petrol. It trades about 0.11 of its potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about 0.06 per unit of risk. If you would invest 44,350 in Otokar Otomotiv ve on August 24, 2024 and sell it today you would earn a total of 1,475 from holding Otokar Otomotiv ve or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Otokar Otomotiv ve vs. Turkiye Petrol Rafinerileri
Performance |
| Timeline |
| Otokar Otomotiv ve |
| Turkiye Petrol Rafin |
Otokar Otomotiv and Turkiye Petrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Otokar Otomotiv and Turkiye Petrol
The main advantage of trading using opposite Otokar Otomotiv and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Otokar Otomotiv 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.| Otokar Otomotiv vs. QNB Finans Finansal | Otokar Otomotiv vs. Pamel Yenilenebilir Elektrik | Otokar Otomotiv vs. Brisa Bridgestone Sabanci | Otokar Otomotiv 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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