Correlation Between Is Yatirim and Turkiye Petrol

Can any of the company-specific risk be diversified away by investing in both Is Yatirim and Turkiye Petrol 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 Is Yatirim and Turkiye Petrol into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Is Yatirim Menkul and Turkiye Petrol Rafinerileri, you can compare the effects of market volatilities on Is Yatirim and Turkiye Petrol 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 Is Yatirim with a short position of Turkiye Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Yatirim and Turkiye Petrol.

Diversification Opportunities for Is Yatirim and Turkiye Petrol

0.09

Correlation Coefficient

Is Yatirim  Turkiye Petrol

Significant diversification

The 3 months correlation between ISMEN and Turkiye is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Is Yatirim Menkul and Turkiye Petrol Rafinerileri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Petrol Rafin and Is Yatirim 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 Is Yatirim Menkul are associated (or correlated) with Turkiye Petrol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Petrol Rafin has no effect on the direction of Is Yatirim i.e., Is Yatirim and Turkiye Petrol go up and down completely randomly.

Pair Corralation between Is Yatirim and Turkiye Petrol

Assuming the 90 days trading horizon Is Yatirim Menkul is expected to generate 2.17 times more return on investment than Turkiye Petrol. However, Is Yatirim is 2.17 times more volatile than Turkiye Petrol Rafinerileri. It trades about 0.18 of its potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about -0.02 per unit of risk. If you would invest  4,142  in Is Yatirim Menkul on October 6, 2024 and sell it today you would earn a total of  460.00  from holding Is Yatirim Menkul or generate 11.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Is Yatirim Menkul  vs.  Turkiye Petrol Rafinerileri

Is Yatirim Menkul

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Is Yatirim Menkul are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Is Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Turkiye Petrol Rafin

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkiye Petrol Rafinerileri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Turkiye Petrol is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Is Yatirim and Turkiye Petrol

The main advantage of trading using opposite Is Yatirim and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Is Yatirim position performs unexpectedly, Turkiye Petrol 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 Turkiye Petrol will offset losses from the drop in Turkiye Petrol's long position.

The idea behind Is Yatirim Menkul and Turkiye Petrol Rafinerileri pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.