Correlation Between Turkiye Petrol and Pinar Entegre

Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Pinar Entegre 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 Pinar Entegre 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 Pinar Entegre Et, you can compare the effects of market volatilities on Turkiye Petrol and Pinar Entegre 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 Pinar Entegre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Pinar Entegre.

Diversification Opportunities for Turkiye Petrol and Pinar Entegre

0.13

Correlation Coefficient

Turkiye Petrol  Pinar Entegre

Average diversification

The 3 months correlation between Turkiye and Pinar is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Pinar Entegre Et in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinar Entegre Et 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 Pinar Entegre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinar Entegre Et has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Pinar Entegre go up and down completely randomly.

Pair Corralation between Turkiye Petrol and Pinar Entegre

Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to generate 0.81 times more return on investment than Pinar Entegre. However, Turkiye Petrol Rafinerileri is 1.23 times less risky than Pinar Entegre. It trades about 0.03 of its potential returns per unit of risk. Pinar Entegre Et is currently generating about -0.12 per unit of risk. If you would invest  13,470  in Turkiye Petrol Rafinerileri on December 29, 2024 and sell it today you would earn a total of  330.00  from holding Turkiye Petrol Rafinerileri or generate 2.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Turkiye Petrol Rafinerileri  vs.  Pinar Entegre Et

Turkiye Petrol Rafin

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Petrol Rafinerileri are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Pinar Entegre Et

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pinar Entegre Et 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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Turkiye Petrol and Pinar Entegre

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

The idea behind Turkiye Petrol Rafinerileri and Pinar Entegre Et 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.