Correlation Between Petkim Petrokimya and Turkcell Iletisim
Can any of the company-specific risk be diversified away by investing in both Petkim Petrokimya and Turkcell Iletisim 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 Turkcell Iletisim 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 Turkcell Iletisim Hizmetleri, you can compare the effects of market volatilities on Petkim Petrokimya and Turkcell Iletisim 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 Turkcell Iletisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petkim Petrokimya and Turkcell Iletisim.
Diversification Opportunities for Petkim Petrokimya and Turkcell Iletisim
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Petkim and Turkcell is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Petkim Petrokimya Holding and Turkcell Iletisim Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkcell Iletisim 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 Turkcell Iletisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkcell Iletisim has no effect on the direction of Petkim Petrokimya i.e., Petkim Petrokimya and Turkcell Iletisim go up and down completely randomly.
Pair Corralation between Petkim Petrokimya and Turkcell Iletisim
Assuming the 90 days trading horizon Petkim Petrokimya Holding is expected to under-perform the Turkcell Iletisim. But the stock apears to be less risky and, when comparing its historical volatility, Petkim Petrokimya Holding is 1.04 times less risky than Turkcell Iletisim. The stock trades about -0.02 of its potential returns per unit of risk. The Turkcell Iletisim Hizmetleri is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 8,475 in Turkcell Iletisim Hizmetleri on September 1, 2024 and sell it today you would earn a total of 580.00 from holding Turkcell Iletisim Hizmetleri or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Petkim Petrokimya Holding vs. Turkcell Iletisim Hizmetleri
Performance |
| Timeline |
| Petkim Petrokimya Holding |
| Turkcell Iletisim |
Petkim Petrokimya and Turkcell Iletisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petkim Petrokimya and Turkcell Iletisim
The main advantage of trading using opposite Petkim Petrokimya and Turkcell Iletisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petkim Petrokimya position performs unexpectedly, Turkcell Iletisim 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 Turkcell Iletisim will offset losses from the drop in Turkcell Iletisim's long position.| Petkim Petrokimya vs. Trend Gayrimenkul Yatirim | Petkim Petrokimya vs. Trabzon Liman Isletmeciligi | Petkim Petrokimya vs. Halk Gayrimenkul Yatirim | Petkim Petrokimya vs. Inveo Yatirim Holding |
| Turkcell Iletisim vs. Trabzon Liman Isletmeciligi | Turkcell Iletisim vs. Bayrak EBT Taban | Turkcell Iletisim vs. Birikim Varlik Yonetim | Turkcell Iletisim vs. Inveo Yatirim 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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