Correlation Between Turkiye Petrol and Turk Traktor
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Turk Traktor 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 Traktor 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 Traktor ve, you can compare the effects of market volatilities on Turkiye Petrol and Turk Traktor 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 Traktor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Turk Traktor.
Diversification Opportunities for Turkiye Petrol and Turk Traktor
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Turk is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Turk Traktor ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Traktor ve 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 Traktor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Traktor ve has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Turk Traktor go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Turk Traktor
Assuming the 90 days trading horizon Turkiye Petrol is expected to generate 5.52 times less return on investment than Turk Traktor. But when comparing it to its historical volatility, Turkiye Petrol Rafinerileri is 1.25 times less risky than Turk Traktor. It trades about 0.06 of its potential returns per unit of risk. Turk Traktor ve is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 69,620 in Turk Traktor ve on September 1, 2024 and sell it today you would earn a total of 8,180 from holding Turk Traktor ve or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Turk Traktor ve
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Turk Traktor ve |
Turkiye Petrol and Turk Traktor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Turk Traktor
The main advantage of trading using opposite Turkiye Petrol and Turk Traktor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Turk Traktor 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 Traktor will offset losses from the drop in Turk Traktor'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 Traktor vs. Turkiye Petrol Rafinerileri | Turk Traktor vs. Turkiye Sise ve | Turk Traktor vs. Eregli Demir 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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