Correlation Between Turkiye Petrol and Aygaz AS
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Aygaz AS 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 Aygaz AS 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 Aygaz AS, you can compare the effects of market volatilities on Turkiye Petrol and Aygaz AS 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 Aygaz AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Aygaz AS.
Diversification Opportunities for Turkiye Petrol and Aygaz AS
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Aygaz is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Aygaz AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aygaz AS 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 Aygaz AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aygaz AS has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Aygaz AS go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Aygaz AS
Assuming the 90 days trading horizon Turkiye Petrol is expected to generate 7.92 times less return on investment than Aygaz AS. But when comparing it to its historical volatility, Turkiye Petrol Rafinerileri is 1.47 times less risky than Aygaz AS. It trades about 0.06 of its potential returns per unit of risk. Aygaz AS is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 15,090 in Aygaz AS on September 1, 2024 and sell it today you would earn a total of 2,610 from holding Aygaz AS or generate 17.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Aygaz AS
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Aygaz AS |
Turkiye Petrol and Aygaz AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Aygaz AS
The main advantage of trading using opposite Turkiye Petrol and Aygaz AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Aygaz AS 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 Aygaz AS will offset losses from the drop in Aygaz AS'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 |
| Aygaz AS vs. Turkiye Petrol Rafinerileri | Aygaz AS vs. Aksa Akrilik Kimya | Aygaz AS vs. Arcelik AS | Aygaz AS vs. Tofas Turk Otomobil |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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