Correlation Between Turkiye Sise and Turkiye Petrol

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

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

Diversification Opportunities for Turkiye Sise and Turkiye Petrol

0.76

Correlation Coefficient

Turkiye Sise  Turkiye Petrol

Poor diversification

The 3 months correlation between Turkiye and Turkiye is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve 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 Turkiye Sise 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 Sise ve 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 Turkiye Sise i.e., Turkiye Sise and Turkiye Petrol go up and down completely randomly.

Pair Corralation between Turkiye Sise and Turkiye Petrol

Assuming the 90 days trading horizon Turkiye Sise ve is expected to generate 1.15 times more return on investment than Turkiye Petrol. However, Turkiye Sise is 1.15 times more volatile than Turkiye Petrol Rafinerileri. It trades about -0.12 of its potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about -0.21 per unit of risk. If you would invest  4,036  in Turkiye Sise ve on November 28, 2024 and sell it today you would lose (460.00) from holding Turkiye Sise ve or give up 11.4% of portfolio value over 90 days.

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

Turkiye Sise ve  vs.  Turkiye Petrol Rafinerileri

Turkiye Sise ve

Risk-Adjusted Performance

Very Weak

Over the last 90 days Turkiye Sise ve has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Turkiye Petrol Rafin

Risk-Adjusted Performance

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 inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Turkiye Sise and Turkiye Petrol

The main advantage of trading using opposite Turkiye Sise and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sise 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 Turkiye Sise ve 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.