Correlation Between Turkiye Petrol and Borusan Yatirim
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Borusan Yatirim 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 Borusan Yatirim 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 Borusan Yatirim ve, you can compare the effects of market volatilities on Turkiye Petrol and Borusan Yatirim 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 Borusan Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Borusan Yatirim.
Diversification Opportunities for Turkiye Petrol and Borusan Yatirim
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Turkiye and Borusan is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Borusan Yatirim ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borusan Yatirim ve 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 Borusan Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borusan Yatirim ve has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Borusan Yatirim go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Borusan Yatirim
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the Borusan Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 2.24 times less risky than Borusan Yatirim. The stock trades about -0.03 of its potential returns per unit of risk. The Borusan Yatirim ve is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 172,400 in Borusan Yatirim ve on August 28, 2024 and sell it today you would earn a total of 35,100 from holding Borusan Yatirim ve or generate 20.36% 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. Borusan Yatirim ve
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Borusan Yatirim ve |
Turkiye Petrol and Borusan Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Borusan Yatirim
The main advantage of trading using opposite Turkiye Petrol and Borusan Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Borusan Yatirim 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 Borusan Yatirim will offset losses from the drop in Borusan Yatirim's long position.| Turkiye Petrol vs. Koza Anadolu Metal | Turkiye Petrol vs. Koza Altin Isletmeleri | Turkiye Petrol vs. Vestel Elektronik Sanayi | Turkiye Petrol vs. Petkim Petrokimya Holding |
| Borusan Yatirim vs. Turkiye Is Bankasi | Borusan Yatirim vs. Turkiye Is Bankasi | Borusan Yatirim vs. Haci Omer Sabanci | Borusan Yatirim vs. Turkiye Halk Bankasi |
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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