Correlation Between Petrokent Turizm and Mackolik Internet

Can any of the company-specific risk be diversified away by investing in both Petrokent Turizm and Mackolik Internet 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 Petrokent Turizm and Mackolik Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Petrokent Turizm AS and Mackolik Internet Hizmetleri, you can compare the effects of market volatilities on Petrokent Turizm and Mackolik Internet 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 Petrokent Turizm with a short position of Mackolik Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrokent Turizm and Mackolik Internet.

Diversification Opportunities for Petrokent Turizm and Mackolik Internet

0.0

Correlation Coefficient

Petrokent Turizm  Mackolik Internet

Pay attention - limited upside

The 3 months correlation between Petrokent and Mackolik is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Petrokent Turizm AS and Mackolik Internet Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackolik Internet and Petrokent Turizm 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 Petrokent Turizm AS are associated (or correlated) with Mackolik Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackolik Internet has no effect on the direction of Petrokent Turizm i.e., Petrokent Turizm and Mackolik Internet go up and down completely randomly.

Pair Corralation between Petrokent Turizm and Mackolik Internet

If you would invest  7,850  in Mackolik Internet Hizmetleri on October 26, 2024 and sell it today you would earn a total of  3,260  from holding Mackolik Internet Hizmetleri or generate 41.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Petrokent Turizm AS  vs.  Mackolik Internet Hizmetleri

Petrokent Turizm

Risk-Adjusted Performance

0 of 100

Very Weak

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

Mackolik Internet

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mackolik Internet Hizmetleri are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Mackolik Internet demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Petrokent Turizm and Mackolik Internet

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

The idea behind Petrokent Turizm AS and Mackolik Internet Hizmetleri 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.