Correlation Between Tumosan and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both Tumosan and Turkiye Petrol 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 Tumosan and Turkiye Petrol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tumosan Motor ve and Turkiye Petrol Rafinerileri, you can compare the effects of market volatilities on Tumosan and Turkiye Petrol 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 Tumosan with a short position of Turkiye Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tumosan and Turkiye Petrol.
Diversification Opportunities for Tumosan and Turkiye Petrol
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tumosan and Turkiye is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Tumosan Motor ve and Turkiye Petrol Rafinerileri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Petrol Rafin and Tumosan 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 Tumosan Motor ve are associated (or correlated) with Turkiye Petrol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Petrol Rafin has no effect on the direction of Tumosan i.e., Tumosan and Turkiye Petrol go up and down completely randomly.
Pair Corralation between Tumosan and Turkiye Petrol
Assuming the 90 days trading horizon Tumosan Motor ve is expected to under-perform the Turkiye Petrol. In addition to that, Tumosan is 1.73 times more volatile than Turkiye Petrol Rafinerileri. It trades about -0.09 of its total potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about 0.15 per unit of volatility. If you would invest 14,260 in Turkiye Petrol Rafinerileri on September 5, 2024 and sell it today you would earn a total of 610.00 from holding Turkiye Petrol Rafinerileri or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tumosan Motor ve vs. Turkiye Petrol Rafinerileri
Performance |
| Timeline |
| Tumosan Motor ve |
| Turkiye Petrol Rafin |
Tumosan and Turkiye Petrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tumosan and Turkiye Petrol
The main advantage of trading using opposite Tumosan and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tumosan position performs unexpectedly, Turkiye Petrol 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 Turkiye Petrol will offset losses from the drop in Turkiye Petrol's long position.| Tumosan vs. Turkiye Petrol Rafinerileri | Tumosan vs. Arcelik AS | Tumosan vs. Turkiye Garanti Bankasi | Tumosan vs. Akbank TAS |
| Turkiye Petrol vs. Eregli Demir ve | Turkiye Petrol vs. Turkiye Sise ve | Turkiye Petrol vs. Turkish Airlines | Turkiye Petrol vs. Petkim Petrokimya 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |