Correlation Between Haci Omer and Petkim Petrokimya
Can any of the company-specific risk be diversified away by investing in both Haci Omer and Petkim Petrokimya 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 Haci Omer and Petkim Petrokimya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haci Omer Sabanci and Petkim Petrokimya Holding, you can compare the effects of market volatilities on Haci Omer and Petkim Petrokimya 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 Haci Omer with a short position of Petkim Petrokimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haci Omer and Petkim Petrokimya.
Diversification Opportunities for Haci Omer and Petkim Petrokimya
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haci and Petkim is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Haci Omer Sabanci and Petkim Petrokimya Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petkim Petrokimya Holding and Haci Omer 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 Haci Omer Sabanci are associated (or correlated) with Petkim Petrokimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petkim Petrokimya Holding has no effect on the direction of Haci Omer i.e., Haci Omer and Petkim Petrokimya go up and down completely randomly.
Pair Corralation between Haci Omer and Petkim Petrokimya
Assuming the 90 days trading horizon Haci Omer Sabanci is expected to generate 1.39 times more return on investment than Petkim Petrokimya. However, Haci Omer is 1.39 times more volatile than Petkim Petrokimya Holding. It trades about 0.15 of its potential returns per unit of risk. Petkim Petrokimya Holding is currently generating about -0.02 per unit of risk. If you would invest 8,325 in Haci Omer Sabanci on September 1, 2024 and sell it today you would earn a total of 725.00 from holding Haci Omer Sabanci or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Haci Omer Sabanci vs. Petkim Petrokimya Holding
Performance |
| Timeline |
| Haci Omer Sabanci |
| Petkim Petrokimya Holding |
Haci Omer and Petkim Petrokimya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haci Omer and Petkim Petrokimya
The main advantage of trading using opposite Haci Omer and Petkim Petrokimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haci Omer position performs unexpectedly, Petkim Petrokimya 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 Petkim Petrokimya will offset losses from the drop in Petkim Petrokimya's long position.| Haci Omer vs. Koc Holding AS | Haci Omer vs. Turkiye Sise ve | Haci Omer vs. Akbank TAS | Haci Omer vs. Turkiye Petrol Rafinerileri |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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