Correlation Between Turkiye Petrol and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Turkiye Garanti 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 Turkiye Garanti 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 Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Turkiye Petrol and Turkiye Garanti 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 Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Turkiye Garanti.
Diversification Opportunities for Turkiye Petrol and Turkiye Garanti
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Turkiye is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Turkiye Garanti Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Garanti Bankasi 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 Turkiye Garanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Garanti Bankasi has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Turkiye Garanti
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the Turkiye Garanti. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 1.58 times less risky than Turkiye Garanti. The stock trades about -0.08 of its potential returns per unit of risk. The Turkiye Garanti Bankasi is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 10,020 in Turkiye Garanti Bankasi on August 26, 2024 and sell it today you would earn a total of 1,930 from holding Turkiye Garanti Bankasi or generate 19.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Turkiye Garanti Bankasi |
Turkiye Petrol and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Turkiye Garanti
The main advantage of trading using opposite Turkiye Petrol and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Turkiye Garanti 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 Turkiye Garanti will offset losses from the drop in Turkiye Garanti'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 |
| Turkiye Garanti vs. Turkiye Is Bankasi | Turkiye Garanti vs. Turkiye Is Bankasi | Turkiye Garanti vs. Haci Omer Sabanci | Turkiye Garanti 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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