Correlation Between Turkiye Petrol and Tofas Turk
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Tofas Turk 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 Tofas Turk 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 Tofas Turk Otomobil, you can compare the effects of market volatilities on Turkiye Petrol and Tofas Turk 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 Tofas Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Tofas Turk.
Diversification Opportunities for Turkiye Petrol and Tofas Turk
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Tofas is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Tofas Turk Otomobil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tofas Turk Otomobil 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 Tofas Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tofas Turk Otomobil has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Tofas Turk go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Tofas Turk
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to generate 0.61 times more return on investment than Tofas Turk. However, Turkiye Petrol Rafinerileri is 1.65 times less risky than Tofas Turk. It trades about -0.03 of its potential returns per unit of risk. Tofas Turk Otomobil is currently generating about -0.07 per unit of risk. If you would invest 15,378 in Turkiye Petrol Rafinerileri on August 28, 2024 and sell it today you would lose (528.00) from holding Turkiye Petrol Rafinerileri or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Tofas Turk Otomobil
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Tofas Turk Otomobil |
Turkiye Petrol and Tofas Turk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Tofas Turk
The main advantage of trading using opposite Turkiye Petrol and Tofas Turk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Tofas Turk 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 Tofas Turk will offset losses from the drop in Tofas Turk's long position.| Turkiye Petrol vs. Koza Anadolu Metal | Turkiye Petrol vs. Koza Altin Isletmeleri | Turkiye Petrol vs. Vestel Elektronik Sanayi | Turkiye Petrol vs. Petkim Petrokimya Holding |
| Tofas Turk vs. Ford Otomotiv Sanayi | Tofas Turk vs. Eregli Demir ve | Tofas Turk vs. Turkiye Petrol Rafinerileri | Tofas Turk vs. Turkiye Sise 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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