Correlation Between Turkiye Petrol and Birlik Mensucat
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Birlik Mensucat 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 Birlik Mensucat 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 Birlik Mensucat Ticaret, you can compare the effects of market volatilities on Turkiye Petrol and Birlik Mensucat 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 Birlik Mensucat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Birlik Mensucat.
Diversification Opportunities for Turkiye Petrol and Birlik Mensucat
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Turkiye and Birlik is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Birlik Mensucat Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birlik Mensucat Ticaret 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 Birlik Mensucat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birlik Mensucat Ticaret has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Birlik Mensucat go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Birlik Mensucat
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the Birlik Mensucat. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 3.98 times less risky than Birlik Mensucat. The stock trades about -0.01 of its potential returns per unit of risk. The Birlik Mensucat Ticaret is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 487.00 in Birlik Mensucat Ticaret on August 31, 2024 and sell it today you would earn a total of 173.00 from holding Birlik Mensucat Ticaret or generate 35.52% 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. Birlik Mensucat Ticaret
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Birlik Mensucat Ticaret |
Turkiye Petrol and Birlik Mensucat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Birlik Mensucat
The main advantage of trading using opposite Turkiye Petrol and Birlik Mensucat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Birlik Mensucat 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 Birlik Mensucat will offset losses from the drop in Birlik Mensucat'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 |
| Birlik Mensucat vs. Ford Otomotiv Sanayi | Birlik Mensucat vs. Eregli Demir ve | Birlik Mensucat vs. Turkiye Petrol Rafinerileri | Birlik Mensucat vs. Turkiye Sise 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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