Correlation Between Turkiye Petrol and Reysas Tasimacilik

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

Diversification Opportunities for Turkiye Petrol and Reysas Tasimacilik

-0.18

Correlation Coefficient

Turkiye Petrol  Reysas Tasimacilik

Good diversification

The 3 months correlation between Turkiye and Reysas is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Reysas Tasimacilik ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reysas Tasimacilik 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 Reysas Tasimacilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reysas Tasimacilik has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Reysas Tasimacilik go up and down completely randomly.

Pair Corralation between Turkiye Petrol and Reysas Tasimacilik

Assuming the 90 days trading horizon Turkiye Petrol is expected to generate 3.42 times less return on investment than Reysas Tasimacilik. But when comparing it to its historical volatility, Turkiye Petrol Rafinerileri is 3.09 times less risky than Reysas Tasimacilik. It trades about 0.24 of its potential returns per unit of risk. Reysas Tasimacilik ve is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  1,563  in Reysas Tasimacilik ve on September 13, 2024 and sell it today you would earn a total of  386.00  from holding Reysas Tasimacilik ve or generate 24.7% return on investment over 90 days.

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

Turkiye Petrol Rafinerileri  vs.  Reysas Tasimacilik ve

Turkiye Petrol Rafin

Risk-Adjusted Performance

2 of 100

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.

Reysas Tasimacilik

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Reysas Tasimacilik ve are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Reysas Tasimacilik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Turkiye Petrol and Reysas Tasimacilik

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

The idea behind Turkiye Petrol Rafinerileri and Reysas Tasimacilik ve 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.