Correlation Between Turkiye Petrol and Mazhar Zorlu
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Mazhar Zorlu 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 Mazhar Zorlu 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 Mazhar Zorlu Holding, you can compare the effects of market volatilities on Turkiye Petrol and Mazhar Zorlu 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 Mazhar Zorlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Mazhar Zorlu.
Diversification Opportunities for Turkiye Petrol and Mazhar Zorlu
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Turkiye and Mazhar is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Mazhar Zorlu Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mazhar Zorlu Holding 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 Mazhar Zorlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mazhar Zorlu Holding has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Mazhar Zorlu go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Mazhar Zorlu
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the Mazhar Zorlu. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 1.65 times less risky than Mazhar Zorlu. The stock trades about -0.03 of its potential returns per unit of risk. The Mazhar Zorlu Holding is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Mazhar Zorlu Holding on September 4, 2024 and sell it today you would earn a total of 65.00 from holding Mazhar Zorlu Holding or generate 9.29% 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. Mazhar Zorlu Holding
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Mazhar Zorlu Holding |
Turkiye Petrol and Mazhar Zorlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Mazhar Zorlu
The main advantage of trading using opposite Turkiye Petrol and Mazhar Zorlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Mazhar Zorlu 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 Mazhar Zorlu will offset losses from the drop in Mazhar Zorlu'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 |
| Mazhar Zorlu vs. Turkiye Petrol Rafinerileri | Mazhar Zorlu vs. Arcelik AS | Mazhar Zorlu vs. Turkiye Garanti Bankasi | Mazhar Zorlu vs. Akbank TAS |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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