Correlation Between Turkiye Petrol and Anadolu Hayat
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Anadolu Hayat 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 Anadolu Hayat 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 Anadolu Hayat Emeklilik, you can compare the effects of market volatilities on Turkiye Petrol and Anadolu Hayat 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 Anadolu Hayat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Anadolu Hayat.
Diversification Opportunities for Turkiye Petrol and Anadolu Hayat
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Anadolu is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Anadolu Hayat Emeklilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anadolu Hayat Emeklilik 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 Anadolu Hayat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anadolu Hayat Emeklilik has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Anadolu Hayat go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Anadolu Hayat
Assuming the 90 days trading horizon Turkiye Petrol is expected to generate 5.5 times less return on investment than Anadolu Hayat. But when comparing it to its historical volatility, Turkiye Petrol Rafinerileri is 1.78 times less risky than Anadolu Hayat. It trades about 0.05 of its potential returns per unit of risk. Anadolu Hayat Emeklilik is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 8,940 in Anadolu Hayat Emeklilik on September 2, 2024 and sell it today you would earn a total of 780.00 from holding Anadolu Hayat Emeklilik or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Anadolu Hayat Emeklilik
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Anadolu Hayat Emeklilik |
Turkiye Petrol and Anadolu Hayat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Anadolu Hayat
The main advantage of trading using opposite Turkiye Petrol and Anadolu Hayat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Anadolu Hayat 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 Anadolu Hayat will offset losses from the drop in Anadolu Hayat'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 |
| Anadolu Hayat vs. Aksa Akrilik Kimya | Anadolu Hayat vs. Tofas Turk Otomobil | Anadolu Hayat vs. AK Sigorta AS | Anadolu Hayat vs. Is Yatirim Menkul |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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