Correlation Between Desa Deri and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both Desa Deri 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 Desa Deri and Turkiye Petrol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Desa Deri Sanayi and Turkiye Petrol Rafinerileri, you can compare the effects of market volatilities on Desa Deri 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 Desa Deri with a short position of Turkiye Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Desa Deri and Turkiye Petrol.
Diversification Opportunities for Desa Deri and Turkiye Petrol
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Desa and Turkiye is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Desa Deri Sanayi 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 Desa Deri 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 Desa Deri Sanayi 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 Desa Deri i.e., Desa Deri and Turkiye Petrol go up and down completely randomly.
Pair Corralation between Desa Deri and Turkiye Petrol
If you would invest 15,187 in Turkiye Petrol Rafinerileri on February 2, 2024 and sell it today you would earn a total of 5,213 from holding Turkiye Petrol Rafinerileri or generate 34.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 0.0% |
Values | Daily Returns |
Desa Deri Sanayi vs. Turkiye Petrol Rafinerileri
Performance |
Timeline |
Desa Deri Sanayi |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Turkiye Petrol Rafin |
Desa Deri and Turkiye Petrol Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Desa Deri and Turkiye Petrol
The main advantage of trading using opposite Desa Deri and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Desa Deri 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.Desa Deri vs. Bms Birlesik Metal | Desa Deri vs. E Data Teknoloji Pazarlama | Desa Deri vs. Politeknik Metal Sanayi | Desa Deri vs. ICBC Turkey Bank |
Turkiye Petrol vs. Eregli Demir ve | Turkiye Petrol vs. Turkiye Sise ve | Turkiye Petrol vs. Turkish Airlines | Turkiye Petrol vs. Petkim Petrokimya Holding |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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