Correlation Between Turkiye Petrol and Gozde Girisim

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

Diversification Opportunities for Turkiye Petrol and Gozde Girisim

0.87

Correlation Coefficient

Turkiye Petrol  Gozde Girisim

Very poor diversification

The 3 months correlation between Turkiye and Gozde is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Gozde Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gozde Girisim Sermayesi 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 Gozde Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gozde Girisim Sermayesi has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Gozde Girisim go up and down completely randomly.

Pair Corralation between Turkiye Petrol and Gozde Girisim

Assuming the 90 days trading horizon Turkiye Petrol is expected to generate 146.45 times less return on investment than Gozde Girisim. But when comparing it to its historical volatility, Turkiye Petrol Rafinerileri is 1.51 times less risky than Gozde Girisim. It trades about 0.0 of its potential returns per unit of risk. Gozde Girisim Sermayesi is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,512  in Gozde Girisim Sermayesi on September 22, 2024 and sell it today you would earn a total of  156.00  from holding Gozde Girisim Sermayesi or generate 6.21% return on investment over 90 days.

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

Turkiye Petrol Rafinerileri  vs.  Gozde Girisim Sermayesi

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.

Gozde Girisim Sermayesi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gozde Girisim Sermayesi 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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Turkiye Petrol and Gozde Girisim

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

The idea behind Turkiye Petrol Rafinerileri and Gozde Girisim Sermayesi 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.