Correlation Between Ayen Enerji and Turkiye Petrol

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

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

Diversification Opportunities for Ayen Enerji and Turkiye Petrol

0.15

Correlation Coefficient

Ayen Enerji  Turkiye Petrol

Average diversification

The 3 months correlation between Ayen and Turkiye is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ayen Enerji AS 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 Ayen Enerji 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 Ayen Enerji AS 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 Ayen Enerji i.e., Ayen Enerji and Turkiye Petrol go up and down completely randomly.

Pair Corralation between Ayen Enerji and Turkiye Petrol

Assuming the 90 days trading horizon Ayen Enerji AS is expected to under-perform the Turkiye Petrol. In addition to that, Ayen Enerji is 1.54 times more volatile than Turkiye Petrol Rafinerileri. It trades about -0.1 of its total potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about -0.02 per unit of volatility. If you would invest  14,640  in Turkiye Petrol Rafinerileri on September 23, 2024 and sell it today you would lose (90.00) from holding Turkiye Petrol Rafinerileri or give up 0.61% of portfolio value over 90 days.

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

Ayen Enerji AS  vs.  Turkiye Petrol Rafinerileri

Ayen Enerji AS

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ayen Enerji AS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Ayen Enerji is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Turkiye Petrol Rafin

Risk-Adjusted Performance

0 of 100

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 latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Ayen Enerji and Turkiye Petrol

The main advantage of trading using opposite Ayen Enerji and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ayen Enerji 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 Ayen Enerji AS 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.