Correlation Between Turkiye Petrol and AG Anadolu
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and AG Anadolu 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 Petrol and AG Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Petrol Rafinerileri and AG Anadolu Group, you can compare the effects of market volatilities on Turkiye Petrol and AG Anadolu 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 Petrol with a short position of AG Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and AG Anadolu.
Diversification Opportunities for Turkiye Petrol and AG Anadolu
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and AGHOL is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and AG Anadolu Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AG Anadolu Group and Turkiye Petrol 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 Petrol Rafinerileri are associated (or correlated) with AG Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AG Anadolu Group has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and AG Anadolu go up and down completely randomly.
Pair Corralation between Turkiye Petrol and AG Anadolu
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the AG Anadolu. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 1.72 times less risky than AG Anadolu. The stock trades about -0.09 of its potential returns per unit of risk. The AG Anadolu Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 31,175 in AG Anadolu Group on August 30, 2024 and sell it today you would earn a total of 2,350 from holding AG Anadolu Group or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. AG Anadolu Group
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| AG Anadolu Group |
Turkiye Petrol and AG Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and AG Anadolu
The main advantage of trading using opposite Turkiye Petrol and AG Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, AG Anadolu 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 AG Anadolu will offset losses from the drop in AG Anadolu's long position.| Turkiye Petrol vs. Eregli Demir ve | Turkiye Petrol vs. Turkiye Sise ve | Turkiye Petrol vs. Turkish Airlines | Turkiye Petrol vs. Petkim Petrokimya Holding |
| AG Anadolu vs. Gentas Genel Metal | AG Anadolu vs. Politeknik Metal Sanayi | AG Anadolu vs. Datagate Bilgisayar Malzemeleri | AG Anadolu vs. Creditwest Faktoring AS |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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