Correlation Between Turkiye Petrol and Aksa Enerji
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Aksa Enerji 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 Aksa Enerji 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 Aksa Enerji Uretim, you can compare the effects of market volatilities on Turkiye Petrol and Aksa Enerji 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 Aksa Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Aksa Enerji.
Diversification Opportunities for Turkiye Petrol and Aksa Enerji
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Turkiye and Aksa is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Aksa Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksa Enerji Uretim 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 Aksa Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksa Enerji Uretim has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Aksa Enerji go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Aksa Enerji
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to generate 0.9 times more return on investment than Aksa Enerji. However, Turkiye Petrol Rafinerileri is 1.12 times less risky than Aksa Enerji. It trades about 0.07 of its potential returns per unit of risk. Aksa Enerji Uretim is currently generating about 0.03 per unit of risk. If you would invest 6,577 in Turkiye Petrol Rafinerileri on November 28, 2024 and sell it today you would earn a total of 5,773 from holding Turkiye Petrol Rafinerileri or generate 87.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Aksa Enerji Uretim
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Aksa Enerji Uretim |
Turkiye Petrol and Aksa Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Aksa Enerji
The main advantage of trading using opposite Turkiye Petrol and Aksa Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Aksa Enerji 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 Aksa Enerji will offset losses from the drop in Aksa Enerji'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 |
| Aksa Enerji vs. Aksa Akrilik Kimya | Aksa Enerji vs. Turkiye Sise ve | Aksa Enerji vs. Hektas Ticaret TAS | Aksa Enerji vs. SASA Polyester 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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