Correlation Between Turkiye Petrol and Kent Gida
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Kent Gida 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 Kent Gida 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 Kent Gida Maddeleri, you can compare the effects of market volatilities on Turkiye Petrol and Kent Gida 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 Kent Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Kent Gida.
Diversification Opportunities for Turkiye Petrol and Kent Gida
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Kent is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri 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 Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Kent Gida go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Kent Gida
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to generate 0.47 times more return on investment than Kent Gida. However, Turkiye Petrol Rafinerileri is 2.11 times less risky than Kent Gida. It trades about -0.07 of its potential returns per unit of risk. Kent Gida Maddeleri is currently generating about -0.1 per unit of risk. If you would invest 15,862 in Turkiye Petrol Rafinerileri on September 2, 2024 and sell it today you would lose (1,142) from holding Turkiye Petrol Rafinerileri or give up 7.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Kent Gida Maddeleri
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Kent Gida Maddeleri |
Turkiye Petrol and Kent Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Kent Gida
The main advantage of trading using opposite Turkiye Petrol and Kent Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Kent Gida 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 Kent Gida will offset losses from the drop in Kent Gida'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 |
| Kent Gida vs. Akbank TAS | Kent Gida vs. Bms Birlesik Metal | Kent Gida vs. Turkiye Kalkinma Bankasi | Kent Gida vs. Koza Anadolu 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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