Correlation Between Turkiye Petrol and Indeks Bilgisayar
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Indeks Bilgisayar 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 Indeks Bilgisayar 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 Indeks Bilgisayar Sistemleri, you can compare the effects of market volatilities on Turkiye Petrol and Indeks Bilgisayar 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 Indeks Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Indeks Bilgisayar.
Diversification Opportunities for Turkiye Petrol and Indeks Bilgisayar
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Indeks is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Indeks Bilgisayar Sistemleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indeks Bilgisayar 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 Indeks Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indeks Bilgisayar has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Indeks Bilgisayar go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Indeks Bilgisayar
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the Indeks Bilgisayar. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 1.51 times less risky than Indeks Bilgisayar. The stock trades about -0.01 of its potential returns per unit of risk. The Indeks Bilgisayar Sistemleri is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 620.00 in Indeks Bilgisayar Sistemleri on August 31, 2024 and sell it today you would earn a total of 55.00 from holding Indeks Bilgisayar Sistemleri or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Indeks Bilgisayar Sistemleri
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Indeks Bilgisayar |
Turkiye Petrol and Indeks Bilgisayar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Indeks Bilgisayar
The main advantage of trading using opposite Turkiye Petrol and Indeks Bilgisayar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Indeks Bilgisayar 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 Indeks Bilgisayar will offset losses from the drop in Indeks Bilgisayar'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 |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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