Correlation Between Turkiye Petrol and Selcuk Ecza
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Selcuk Ecza 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 Selcuk Ecza 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 Selcuk Ecza Deposu, you can compare the effects of market volatilities on Turkiye Petrol and Selcuk Ecza 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 Selcuk Ecza. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Selcuk Ecza.
Diversification Opportunities for Turkiye Petrol and Selcuk Ecza
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Turkiye and Selcuk is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Selcuk Ecza Deposu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selcuk Ecza Deposu 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 Selcuk Ecza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selcuk Ecza Deposu has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Selcuk Ecza go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Selcuk Ecza
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to generate 10.17 times more return on investment than Selcuk Ecza. However, Turkiye Petrol is 10.17 times more volatile than Selcuk Ecza Deposu. It trades about 0.05 of its potential returns per unit of risk. Selcuk Ecza Deposu is currently generating about 0.07 per unit of risk. If you would invest 5,029 in Turkiye Petrol Rafinerileri on September 2, 2024 and sell it today you would earn a total of 9,691 from holding Turkiye Petrol Rafinerileri or generate 192.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Selcuk Ecza Deposu
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Selcuk Ecza Deposu |
Turkiye Petrol and Selcuk Ecza Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Selcuk Ecza
The main advantage of trading using opposite Turkiye Petrol and Selcuk Ecza positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Selcuk Ecza 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 Selcuk Ecza will offset losses from the drop in Selcuk Ecza'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 |
| Selcuk Ecza vs. Turkiye Is Bankasi | Selcuk Ecza vs. Ege Endustri ve | Selcuk Ecza vs. Turkiye Petrol Rafinerileri | Selcuk Ecza vs. Ford Otomotiv 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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