Correlation Between Petkim Petrokimya and Trend Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Petkim Petrokimya and Trend Gayrimenkul 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 Trend Gayrimenkul 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 Trend Gayrimenkul Yatirim, you can compare the effects of market volatilities on Petkim Petrokimya and Trend Gayrimenkul 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 Trend Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petkim Petrokimya and Trend Gayrimenkul.
Diversification Opportunities for Petkim Petrokimya and Trend Gayrimenkul
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Petkim and Trend is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Petkim Petrokimya Holding and Trend Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend Gayrimenkul Yatirim 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 Trend Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Gayrimenkul Yatirim has no effect on the direction of Petkim Petrokimya i.e., Petkim Petrokimya and Trend Gayrimenkul go up and down completely randomly.
Pair Corralation between Petkim Petrokimya and Trend Gayrimenkul
Assuming the 90 days trading horizon Petkim Petrokimya Holding is expected to generate 0.68 times more return on investment than Trend Gayrimenkul. However, Petkim Petrokimya Holding is 1.47 times less risky than Trend Gayrimenkul. It trades about -0.02 of its potential returns per unit of risk. Trend Gayrimenkul Yatirim is currently generating about -0.09 per unit of risk. If you would invest 1,856 in Petkim Petrokimya Holding on September 1, 2024 and sell it today you would lose (22.00) from holding Petkim Petrokimya Holding or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petkim Petrokimya Holding vs. Trend Gayrimenkul Yatirim
Performance |
| Timeline |
| Petkim Petrokimya Holding |
| Trend Gayrimenkul Yatirim |
Petkim Petrokimya and Trend Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petkim Petrokimya and Trend Gayrimenkul
The main advantage of trading using opposite Petkim Petrokimya and Trend Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petkim Petrokimya position performs unexpectedly, Trend Gayrimenkul 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 Trend Gayrimenkul will offset losses from the drop in Trend Gayrimenkul'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 |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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