Correlation Between Turkiye Petrol and Aselsan Elektronik
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Aselsan Elektronik 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 Aselsan Elektronik 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 Aselsan Elektronik Sanayi, you can compare the effects of market volatilities on Turkiye Petrol and Aselsan Elektronik 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 Aselsan Elektronik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Aselsan Elektronik.
Diversification Opportunities for Turkiye Petrol and Aselsan Elektronik
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Turkiye and Aselsan is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Aselsan Elektronik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aselsan Elektronik Sanayi 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 Aselsan Elektronik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aselsan Elektronik Sanayi has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Aselsan Elektronik go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Aselsan Elektronik
Assuming the 90 days trading horizon Turkiye Petrol is expected to generate 5.57 times less return on investment than Aselsan Elektronik. In addition to that, Turkiye Petrol is 1.02 times more volatile than Aselsan Elektronik Sanayi. It trades about 0.1 of its total potential returns per unit of risk. Aselsan Elektronik Sanayi is currently generating about 0.56 per unit of volatility. If you would invest 6,990 in Aselsan Elektronik Sanayi on October 20, 2024 and sell it today you would earn a total of 1,115 from holding Aselsan Elektronik Sanayi or generate 15.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Aselsan Elektronik Sanayi
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Aselsan Elektronik Sanayi |
Turkiye Petrol and Aselsan Elektronik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Aselsan Elektronik
The main advantage of trading using opposite Turkiye Petrol and Aselsan Elektronik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Aselsan Elektronik 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 Aselsan Elektronik will offset losses from the drop in Aselsan Elektronik'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 |
| Aselsan Elektronik vs. Turkish Airlines | Aselsan Elektronik vs. Turkiye Petrol Rafinerileri | Aselsan Elektronik vs. Petkim Petrokimya Holding | Aselsan Elektronik vs. Eregli Demir ve |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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