Correlation Between Petkim Petrokimya and Koza Altin
Can any of the company-specific risk be diversified away by investing in both Petkim Petrokimya and Koza Altin 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 Petkim Petrokimya and Koza Altin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petkim Petrokimya Holding and Koza Altin Isletmeleri, you can compare the effects of market volatilities on Petkim Petrokimya and Koza Altin 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 Petkim Petrokimya with a short position of Koza Altin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petkim Petrokimya and Koza Altin.
Diversification Opportunities for Petkim Petrokimya and Koza Altin
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Petkim and Koza is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Petkim Petrokimya Holding and Koza Altin Isletmeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Altin Isletmeleri and Petkim Petrokimya 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 Petkim Petrokimya Holding are associated (or correlated) with Koza Altin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Altin Isletmeleri has no effect on the direction of Petkim Petrokimya i.e., Petkim Petrokimya and Koza Altin go up and down completely randomly.
Pair Corralation between Petkim Petrokimya and Koza Altin
Assuming the 90 days trading horizon Petkim Petrokimya Holding is expected to under-perform the Koza Altin. But the stock apears to be less risky and, when comparing its historical volatility, Petkim Petrokimya Holding is 1.36 times less risky than Koza Altin. The stock trades about -0.04 of its potential returns per unit of risk. The Koza Altin Isletmeleri is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,090 in Koza Altin Isletmeleri on August 28, 2024 and sell it today you would earn a total of 24.00 from holding Koza Altin Isletmeleri or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petkim Petrokimya Holding vs. Koza Altin Isletmeleri
Performance |
| Timeline |
| Petkim Petrokimya Holding |
| Koza Altin Isletmeleri |
Petkim Petrokimya and Koza Altin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petkim Petrokimya and Koza Altin
The main advantage of trading using opposite Petkim Petrokimya and Koza Altin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petkim Petrokimya position performs unexpectedly, Koza Altin 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 Koza Altin will offset losses from the drop in Koza Altin's long position.| Petkim Petrokimya vs. Turkiye Petrol Rafinerileri | Petkim Petrokimya vs. Aselsan Elektronik Sanayi | Petkim Petrokimya vs. Eregli Demir ve | Petkim Petrokimya vs. Turkish Airlines |
| Koza Altin vs. Qnb Finansbank AS | Koza Altin vs. QNB Finans Finansal | Koza Altin vs. Turkiye Kalkinma Bankasi | Koza Altin vs. Kocaer Celik Sanayi |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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