Correlation Between Petrokent Turizm and Pamel Yenilenebilir

Can any of the company-specific risk be diversified away by investing in both Petrokent Turizm and Pamel Yenilenebilir 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 Pamel Yenilenebilir 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 Pamel Yenilenebilir Elektrik, you can compare the effects of market volatilities on Petrokent Turizm and Pamel Yenilenebilir 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 Pamel Yenilenebilir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrokent Turizm and Pamel Yenilenebilir.

Diversification Opportunities for Petrokent Turizm and Pamel Yenilenebilir

0.1

Correlation Coefficient

Petrokent Turizm  Pamel Yenilenebilir

Average diversification

The 3 months correlation between Petrokent and Pamel is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Petrokent Turizm AS and Pamel Yenilenebilir Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pamel Yenilenebilir 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 Pamel Yenilenebilir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pamel Yenilenebilir has no effect on the direction of Petrokent Turizm i.e., Petrokent Turizm and Pamel Yenilenebilir go up and down completely randomly.

Pair Corralation between Petrokent Turizm and Pamel Yenilenebilir

Assuming the 90 days trading horizon Petrokent Turizm is expected to generate 1.38 times less return on investment than Pamel Yenilenebilir. In addition to that, Petrokent Turizm is 1.23 times more volatile than Pamel Yenilenebilir Elektrik. It trades about 0.06 of its total potential returns per unit of risk. Pamel Yenilenebilir Elektrik is currently generating about 0.09 per unit of volatility. If you would invest  9,210  in Pamel Yenilenebilir Elektrik on September 23, 2024 and sell it today you would earn a total of  340.00  from holding Pamel Yenilenebilir Elektrik or generate 3.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Petrokent Turizm AS  vs.  Pamel Yenilenebilir Elektrik

Petrokent Turizm

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Petrokent Turizm AS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Petrokent Turizm may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pamel Yenilenebilir

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Petrokent Turizm and Pamel Yenilenebilir

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

The idea behind Petrokent Turizm AS and Pamel Yenilenebilir Elektrik 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.