Correlation Between Turkiye Petrol and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Koza Anadolu 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 Koza Anadolu 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 Koza Anadolu Metal, you can compare the effects of market volatilities on Turkiye Petrol and Koza Anadolu 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 Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Koza Anadolu.
Diversification Opportunities for Turkiye Petrol and Koza Anadolu
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and Koza is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Koza Anadolu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Anadolu 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 Koza Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Anadolu Metal has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Koza Anadolu go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Koza Anadolu
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the Koza Anadolu. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 1.86 times less risky than Koza Anadolu. The stock trades about -0.05 of its potential returns per unit of risk. The Koza Anadolu Metal is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 6,100 in Koza Anadolu Metal on August 27, 2024 and sell it today you would earn a total of 1,415 from holding Koza Anadolu Metal or generate 23.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Koza Anadolu Metal
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Koza Anadolu Metal |
Turkiye Petrol and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Koza Anadolu
The main advantage of trading using opposite Turkiye Petrol and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Koza Anadolu 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 Koza Anadolu will offset losses from the drop in Koza Anadolu'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 |
| Koza Anadolu vs. Qnb Finansbank AS | Koza Anadolu vs. QNB Finans Finansal | Koza Anadolu vs. Turkiye Kalkinma Bankasi | Koza Anadolu vs. Kocaer Celik Sanayi |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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