Correlation Between Turkiye Petrol and Gozde Girisim
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Gozde Girisim 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 Gozde Girisim 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 Gozde Girisim Sermayesi, you can compare the effects of market volatilities on Turkiye Petrol and Gozde Girisim 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 Gozde Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Gozde Girisim.
Diversification Opportunities for Turkiye Petrol and Gozde Girisim
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Turkiye and Gozde is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Gozde Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gozde Girisim Sermayesi 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 Gozde Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gozde Girisim Sermayesi has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Gozde Girisim go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Gozde Girisim
Assuming the 90 days trading horizon Turkiye Petrol is expected to generate 1.46 times less return on investment than Gozde Girisim. But when comparing it to its historical volatility, Turkiye Petrol Rafinerileri is 1.69 times less risky than Gozde Girisim. It trades about 0.05 of its potential returns per unit of risk. Gozde Girisim Sermayesi is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,262 in Gozde Girisim Sermayesi on September 14, 2024 and sell it today you would earn a total of 436.00 from holding Gozde Girisim Sermayesi or generate 19.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Gozde Girisim Sermayesi
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Gozde Girisim Sermayesi |
Turkiye Petrol and Gozde Girisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Gozde Girisim
The main advantage of trading using opposite Turkiye Petrol and Gozde Girisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Gozde Girisim 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 Gozde Girisim will offset losses from the drop in Gozde Girisim'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 |
| Gozde Girisim vs. Verusa Holding AS | Gozde Girisim vs. Hedef Holdings AS | Gozde Girisim vs. GSD Holding AS | Gozde Girisim vs. Guler Yatirim Holding |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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