Correlation Between Turkiye Petrol and Koza Altin
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Koza Altin 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 Altin 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 Altin Isletmeleri, you can compare the effects of market volatilities on Turkiye Petrol and Koza Altin 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 Altin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Koza Altin.
Diversification Opportunities for Turkiye Petrol and Koza Altin
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Turkiye and Koza is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Koza Altin Isletmeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Altin Isletmeleri 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 Altin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Altin Isletmeleri has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Koza Altin go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Koza Altin
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the Koza Altin. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 1.99 times less risky than Koza Altin. The stock trades about -0.25 of its potential returns per unit of risk. The Koza Altin Isletmeleri is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,254 in Koza Altin Isletmeleri on November 4, 2024 and sell it today you would earn a total of 4.00 from holding Koza Altin Isletmeleri or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Koza Altin Isletmeleri
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Koza Altin Isletmeleri |
Turkiye Petrol and Koza Altin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Koza Altin
The main advantage of trading using opposite Turkiye Petrol and Koza Altin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Koza Altin 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 Altin will offset losses from the drop in Koza Altin'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 |
| Koza Altin vs. Koza Anadolu Metal | Koza Altin vs. Turkiye Sise ve | Koza Altin vs. Turkiye Petrol Rafinerileri | Koza Altin vs. Eregli Demir ve |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |