Correlation Between Petkim Petrokimya and Haci Omer
Can any of the company-specific risk be diversified away by investing in both Petkim Petrokimya and Haci Omer 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 Haci Omer 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 Haci Omer Sabanci, you can compare the effects of market volatilities on Petkim Petrokimya and Haci Omer 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 Haci Omer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petkim Petrokimya and Haci Omer.
Diversification Opportunities for Petkim Petrokimya and Haci Omer
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Petkim and Haci is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Petkim Petrokimya Holding and Haci Omer Sabanci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haci Omer Sabanci 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 Haci Omer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haci Omer Sabanci has no effect on the direction of Petkim Petrokimya i.e., Petkim Petrokimya and Haci Omer go up and down completely randomly.
Pair Corralation between Petkim Petrokimya and Haci Omer
Assuming the 90 days trading horizon Petkim Petrokimya Holding is expected to under-perform the Haci Omer. In addition to that, Petkim Petrokimya is 1.03 times more volatile than Haci Omer Sabanci. It trades about -0.01 of its total potential returns per unit of risk. Haci Omer Sabanci is currently generating about 0.08 per unit of volatility. If you would invest 6,037 in Haci Omer Sabanci on August 29, 2024 and sell it today you would earn a total of 2,903 from holding Haci Omer Sabanci or generate 48.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petkim Petrokimya Holding vs. Haci Omer Sabanci
Performance |
| Timeline |
| Petkim Petrokimya Holding |
| Haci Omer Sabanci |
Petkim Petrokimya and Haci Omer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petkim Petrokimya and Haci Omer
The main advantage of trading using opposite Petkim Petrokimya and Haci Omer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petkim Petrokimya position performs unexpectedly, Haci Omer 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 Haci Omer will offset losses from the drop in Haci Omer'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 |
| Haci Omer vs. Koc Holding AS | Haci Omer vs. Turkiye Sise ve | Haci Omer vs. Akbank TAS | Haci Omer vs. Turkiye Petrol Rafinerileri |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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