Correlation Between Turkiye Petrol and Emlak Konut
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Emlak Konut 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 Emlak Konut 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 Emlak Konut Gayrimenkul, you can compare the effects of market volatilities on Turkiye Petrol and Emlak Konut 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 Emlak Konut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Emlak Konut.
Diversification Opportunities for Turkiye Petrol and Emlak Konut
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and Emlak is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Emlak Konut Gayrimenkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emlak Konut Gayrimenkul 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 Emlak Konut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emlak Konut Gayrimenkul has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Emlak Konut go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Emlak Konut
Assuming the 90 days trading horizon Turkiye Petrol is expected to generate 5.01 times less return on investment than Emlak Konut. But when comparing it to its historical volatility, Turkiye Petrol Rafinerileri is 1.63 times less risky than Emlak Konut. It trades about 0.03 of its potential returns per unit of risk. Emlak Konut Gayrimenkul is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 766.00 in Emlak Konut Gayrimenkul on September 2, 2024 and sell it today you would earn a total of 500.00 from holding Emlak Konut Gayrimenkul or generate 65.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Emlak Konut Gayrimenkul
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Emlak Konut Gayrimenkul |
Turkiye Petrol and Emlak Konut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Emlak Konut
The main advantage of trading using opposite Turkiye Petrol and Emlak Konut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Emlak Konut 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 Emlak Konut will offset losses from the drop in Emlak Konut'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 |
| Emlak Konut vs. Akbank TAS | Emlak Konut vs. Turkiye Garanti Bankasi | Emlak Konut vs. Yapi ve Kredi | Emlak Konut vs. Turkiye Petrol Rafinerileri |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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