Correlation Between Tekfen Holding and Petkim Petrokimya
Can any of the company-specific risk be diversified away by investing in both Tekfen Holding 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 Tekfen Holding and Petkim Petrokimya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tekfen Holding AS and Petkim Petrokimya Holding, you can compare the effects of market volatilities on Tekfen Holding 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 Tekfen Holding with a short position of Petkim Petrokimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekfen Holding and Petkim Petrokimya.
Diversification Opportunities for Tekfen Holding and Petkim Petrokimya
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tekfen and Petkim is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS 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 Tekfen Holding 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 Tekfen Holding AS 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 Tekfen Holding i.e., Tekfen Holding and Petkim Petrokimya go up and down completely randomly.
Pair Corralation between Tekfen Holding and Petkim Petrokimya
Assuming the 90 days trading horizon Tekfen Holding AS is expected to under-perform the Petkim Petrokimya. In addition to that, Tekfen Holding is 2.02 times more volatile than Petkim Petrokimya Holding. It trades about -0.13 of its total potential returns per unit of risk. Petkim Petrokimya Holding is currently generating about -0.08 per unit of volatility. If you would invest 1,834 in Petkim Petrokimya Holding on October 23, 2024 and sell it today you would lose (60.00) from holding Petkim Petrokimya Holding or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Tekfen Holding AS vs. Petkim Petrokimya Holding
Performance |
| Timeline |
| Tekfen Holding AS |
| Petkim Petrokimya Holding |
Tekfen Holding and Petkim Petrokimya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekfen Holding and Petkim Petrokimya
The main advantage of trading using opposite Tekfen Holding and Petkim Petrokimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekfen Holding 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.| Tekfen Holding vs. Turkiye Sise ve | Tekfen Holding vs. Turkiye Petrol Rafinerileri | Tekfen Holding vs. Petkim Petrokimya Holding | Tekfen Holding vs. TAV Havalimanlari 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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