Correlation Between Turkiye Petrol and Turk Tuborg
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Turk Tuborg 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 Turk Tuborg 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 Turk Tuborg Bira, you can compare the effects of market volatilities on Turkiye Petrol and Turk Tuborg 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 Turk Tuborg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Turk Tuborg.
Diversification Opportunities for Turkiye Petrol and Turk Tuborg
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Turkiye and Turk is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Turk Tuborg Bira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Tuborg Bira 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 Turk Tuborg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Tuborg Bira has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Turk Tuborg go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Turk Tuborg
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the Turk Tuborg. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 2.61 times less risky than Turk Tuborg. The stock trades about -0.07 of its potential returns per unit of risk. The Turk Tuborg Bira is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 10,700 in Turk Tuborg Bira on September 2, 2024 and sell it today you would earn a total of 2,710 from holding Turk Tuborg Bira or generate 25.33% 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. Turk Tuborg Bira
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Turk Tuborg Bira |
Turkiye Petrol and Turk Tuborg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Turk Tuborg
The main advantage of trading using opposite Turkiye Petrol and Turk Tuborg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Turk Tuborg 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 Turk Tuborg will offset losses from the drop in Turk Tuborg'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 |
| Turk Tuborg vs. Eregli Demir ve | Turk Tuborg vs. Turkiye Petrol Rafinerileri | Turk Tuborg vs. Turkiye Sise ve | Turk Tuborg 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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