Correlation Between Turkiye Petrol and Matriks Bilgi

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

Diversification Opportunities for Turkiye Petrol and Matriks Bilgi

-0.16

Correlation Coefficient

Turkiye Petrol  Matriks Bilgi

Good diversification

The 3 months correlation between Turkiye and Matriks is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Matriks Bilgi Dagitim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matriks Bilgi Dagitim 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 Matriks Bilgi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matriks Bilgi Dagitim has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Matriks Bilgi go up and down completely randomly.

Pair Corralation between Turkiye Petrol and Matriks Bilgi

Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the Matriks Bilgi. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 2.08 times less risky than Matriks Bilgi. The stock trades about -0.09 of its potential returns per unit of risk. The Matriks Bilgi Dagitim is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,679  in Matriks Bilgi Dagitim on September 21, 2024 and sell it today you would earn a total of  321.00  from holding Matriks Bilgi Dagitim or generate 19.12% 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.  Matriks Bilgi Dagitim

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.

Matriks Bilgi Dagitim

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Matriks Bilgi Dagitim are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Matriks Bilgi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Turkiye Petrol and Matriks Bilgi

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

The idea behind Turkiye Petrol Rafinerileri and Matriks Bilgi Dagitim 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.