Correlation Between Turkiye Petrol and Logo Yazilim

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

Diversification Opportunities for Turkiye Petrol and Logo Yazilim

-0.24

Correlation Coefficient

Turkiye Petrol  Logo Yazilim

Very good diversification

The 3 months correlation between Turkiye and Logo is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Logo Yazilim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logo Yazilim 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 Logo Yazilim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logo Yazilim Sanayi has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Logo Yazilim go up and down completely randomly.

Pair Corralation between Turkiye Petrol and Logo Yazilim

Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the Logo Yazilim. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 1.97 times less risky than Logo Yazilim. The stock trades about -0.1 of its potential returns per unit of risk. The Logo Yazilim Sanayi is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  9,460  in Logo Yazilim Sanayi on September 26, 2024 and sell it today you would earn a total of  1,710  from holding Logo Yazilim Sanayi or generate 18.08% 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.  Logo Yazilim Sanayi

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.

Logo Yazilim Sanayi

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Logo Yazilim Sanayi are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Logo Yazilim unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Turkiye Petrol and Logo Yazilim

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

The idea behind Turkiye Petrol Rafinerileri and Logo Yazilim 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.