Correlation Between Turkiye Petrol and Duran Dogan
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Duran Dogan 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 Duran Dogan 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 Duran Dogan Basim ve, you can compare the effects of market volatilities on Turkiye Petrol and Duran Dogan 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 Duran Dogan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Duran Dogan.
Diversification Opportunities for Turkiye Petrol and Duran Dogan
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Duran is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Duran Dogan Basim ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duran Dogan Basim 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 Duran Dogan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duran Dogan Basim has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Duran Dogan go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Duran Dogan
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the Duran Dogan. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 5.25 times less risky than Duran Dogan. The stock trades about -0.03 of its potential returns per unit of risk. The Duran Dogan Basim ve is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,831 in Duran Dogan Basim ve on August 30, 2024 and sell it today you would earn a total of 597.00 from holding Duran Dogan Basim ve or generate 32.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Duran Dogan Basim ve
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Duran Dogan Basim |
Turkiye Petrol and Duran Dogan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Duran Dogan
The main advantage of trading using opposite Turkiye Petrol and Duran Dogan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Duran Dogan 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 Duran Dogan will offset losses from the drop in Duran Dogan'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 |
| Duran Dogan vs. Sodas Sodyum Sanayi | Duran Dogan vs. Cuhadaroglu Metal Sanayi | Duran Dogan vs. Borlease Otomotiv AS | Duran Dogan vs. Akbank TAS |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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