Correlation Between Turkiye Petrol and SASA Polyester

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

Diversification Opportunities for Turkiye Petrol and SASA Polyester

0.85

Correlation Coefficient

Turkiye Petrol  SASA Polyester

Very poor diversification

The 3 months correlation between Turkiye and SASA is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and SASA Polyester Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASA Polyester Sanayi 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 SASA Polyester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASA Polyester Sanayi has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and SASA Polyester go up and down completely randomly.

Pair Corralation between Turkiye Petrol and SASA Polyester

Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the SASA Polyester. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 1.46 times less risky than SASA Polyester. The stock trades about -0.21 of its potential returns per unit of risk. The SASA Polyester Sanayi is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest  416.00  in SASA Polyester Sanayi on November 28, 2024 and sell it today you would lose (69.00) from holding SASA Polyester Sanayi or give up 16.59% of portfolio value over 90 days.

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

Turkiye Petrol Rafinerileri  vs.  SASA Polyester Sanayi

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.

SASA Polyester Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days SASA Polyester Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Turkiye Petrol and SASA Polyester

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

The idea behind Turkiye Petrol Rafinerileri and SASA Polyester Sanayi 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.