Correlation Between Tofas Turk and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both Tofas Turk 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 Tofas Turk and Turkiye Petrol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tofas Turk Otomobil and Turkiye Petrol Rafinerileri, you can compare the effects of market volatilities on Tofas Turk 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 Tofas Turk with a short position of Turkiye Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tofas Turk and Turkiye Petrol.
Diversification Opportunities for Tofas Turk and Turkiye Petrol
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tofas and Turkiye is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Tofas Turk Otomobil 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 Tofas Turk 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 Tofas Turk Otomobil 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 Tofas Turk i.e., Tofas Turk and Turkiye Petrol go up and down completely randomly.
Pair Corralation between Tofas Turk and Turkiye Petrol
Assuming the 90 days trading horizon Tofas Turk Otomobil is expected to generate 1.67 times more return on investment than Turkiye Petrol. However, Tofas Turk is 1.67 times more volatile than Turkiye Petrol Rafinerileri. It trades about -0.05 of its potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about -0.39 per unit of risk. If you would invest 20,900 in Tofas Turk Otomobil on November 27, 2024 and sell it today you would lose (630.00) from holding Tofas Turk Otomobil or give up 3.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tofas Turk Otomobil vs. Turkiye Petrol Rafinerileri
Performance |
| Timeline |
| Tofas Turk Otomobil |
| Turkiye Petrol Rafin |
Tofas Turk and Turkiye Petrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tofas Turk and Turkiye Petrol
The main advantage of trading using opposite Tofas Turk and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tofas Turk 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.| Tofas Turk vs. Akbank TAS | Tofas Turk vs. Turkiye Garanti Bankasi | Tofas Turk vs. Yapi ve Kredi | Tofas Turk vs. Turkiye Petrol Rafinerileri |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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