Correlation Between Turkiye Sise and Petkim Petrokimya
Can any of the company-specific risk be diversified away by investing in both Turkiye Sise 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 Turkiye Sise and Petkim Petrokimya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Sise ve and Petkim Petrokimya Holding, you can compare the effects of market volatilities on Turkiye Sise 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 Turkiye Sise with a short position of Petkim Petrokimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sise and Petkim Petrokimya.
Diversification Opportunities for Turkiye Sise and Petkim Petrokimya
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Petkim is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve 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 Turkiye Sise 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 Turkiye Sise ve 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 Turkiye Sise i.e., Turkiye Sise and Petkim Petrokimya go up and down completely randomly.
Pair Corralation between Turkiye Sise and Petkim Petrokimya
Assuming the 90 days trading horizon Turkiye Sise ve is expected to generate 0.81 times more return on investment than Petkim Petrokimya. However, Turkiye Sise ve is 1.23 times less risky than Petkim Petrokimya. It trades about 0.09 of its potential returns per unit of risk. Petkim Petrokimya Holding is currently generating about -0.04 per unit of risk. If you would invest 3,996 in Turkiye Sise ve on August 28, 2024 and sell it today you would earn a total of 108.00 from holding Turkiye Sise ve or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Sise ve vs. Petkim Petrokimya Holding
Performance |
| Timeline |
| Turkiye Sise ve |
| Petkim Petrokimya Holding |
Turkiye Sise and Petkim Petrokimya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Sise and Petkim Petrokimya
The main advantage of trading using opposite Turkiye Sise and Petkim Petrokimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sise 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.| Turkiye Sise vs. Eregli Demir ve | Turkiye Sise vs. Turkiye Petrol Rafinerileri | Turkiye Sise vs. Turkish Airlines | Turkiye Sise vs. Ford Otomotiv Sanayi |
| Petkim Petrokimya vs. Qnb Finansbank AS | Petkim Petrokimya vs. QNB Finans Finansal | Petkim Petrokimya vs. Turkiye Kalkinma Bankasi | Petkim Petrokimya 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |