Correlation Between Turkiye Petrol and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Gentas Genel 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 Gentas Genel 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 Gentas Genel Metal, you can compare the effects of market volatilities on Turkiye Petrol and Gentas Genel 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 Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Gentas Genel.
Diversification Opportunities for Turkiye Petrol and Gentas Genel
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Turkiye and Gentas is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Gentas Genel Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentas Genel Metal 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 Gentas Genel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentas Genel Metal has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Gentas Genel go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Gentas Genel
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the Gentas Genel. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 2.26 times less risky than Gentas Genel. The stock trades about -0.39 of its potential returns per unit of risk. The Gentas Genel Metal is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,137 in Gentas Genel Metal on November 27, 2024 and sell it today you would earn a total of 151.00 from holding Gentas Genel Metal or generate 13.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Gentas Genel Metal
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Gentas Genel Metal |
Turkiye Petrol and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Gentas Genel
The main advantage of trading using opposite Turkiye Petrol and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Gentas Genel 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 Gentas Genel will offset losses from the drop in Gentas Genel'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 |
| Gentas Genel vs. CEO Event Medya | Gentas Genel vs. MEGA METAL | Gentas Genel vs. KOC METALURJI | Gentas Genel vs. Bms Birlesik Metal |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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