Correlation Between Turkiye Petrol and Haci Omer
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Haci Omer 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 Haci Omer 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 Haci Omer Sabanci, you can compare the effects of market volatilities on Turkiye Petrol and Haci Omer 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 Haci Omer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Haci Omer.
Diversification Opportunities for Turkiye Petrol and Haci Omer
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Turkiye and Haci is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Haci Omer Sabanci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haci Omer Sabanci 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 Haci Omer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haci Omer Sabanci has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Haci Omer go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Haci Omer
Assuming the 90 days trading horizon Turkiye Petrol is expected to generate 21.68 times less return on investment than Haci Omer. But when comparing it to its historical volatility, Turkiye Petrol Rafinerileri is 1.91 times less risky than Haci Omer. It trades about 0.02 of its potential returns per unit of risk. Haci Omer Sabanci is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 8,320 in Haci Omer Sabanci on August 25, 2024 and sell it today you would earn a total of 850.00 from holding Haci Omer Sabanci or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Haci Omer Sabanci
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Haci Omer Sabanci |
Turkiye Petrol and Haci Omer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Haci Omer
The main advantage of trading using opposite Turkiye Petrol and Haci Omer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Haci Omer 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 Haci Omer will offset losses from the drop in Haci Omer'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 |
| Haci Omer vs. Koc Holding AS | Haci Omer vs. Turkiye Sise ve | Haci Omer vs. Akbank TAS | Haci Omer vs. Turkiye Petrol Rafinerileri |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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