Correlation Between Turkiye Petrol and Ege Endustri
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Ege Endustri 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 Ege Endustri 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 Ege Endustri ve, you can compare the effects of market volatilities on Turkiye Petrol and Ege Endustri 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 Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Ege Endustri.
Diversification Opportunities for Turkiye Petrol and Ege Endustri
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Turkiye and Ege is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri 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 Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Ege Endustri go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Ege Endustri
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to generate 0.64 times more return on investment than Ege Endustri. However, Turkiye Petrol Rafinerileri is 1.57 times less risky than Ege Endustri. It trades about 0.0 of its potential returns per unit of risk. Ege Endustri ve is currently generating about -0.03 per unit of risk. If you would invest 14,900 in Turkiye Petrol Rafinerileri on August 28, 2024 and sell it today you would lose (50.00) from holding Turkiye Petrol Rafinerileri or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Ege Endustri ve
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Ege Endustri ve |
Turkiye Petrol and Ege Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Ege Endustri
The main advantage of trading using opposite Turkiye Petrol and Ege Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Ege Endustri 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 Ege Endustri will offset losses from the drop in Ege Endustri'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 |
| Ege Endustri vs. Qnb Finansbank AS | Ege Endustri vs. Kent Gida Maddeleri | Ege Endustri vs. QNB Finans Finansal | Ege Endustri vs. Turkiye Kalkinma 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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