Correlation Between Turkiye Petrol and Mazhar Zorlu

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

Diversification Opportunities for Turkiye Petrol and Mazhar Zorlu

0.2

Correlation Coefficient

Turkiye Petrol  Mazhar Zorlu

Modest diversification

The 3 months correlation between Turkiye and Mazhar is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Mazhar Zorlu Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mazhar Zorlu Holding 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 Mazhar Zorlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mazhar Zorlu Holding has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Mazhar Zorlu go up and down completely randomly.

Pair Corralation between Turkiye Petrol and Mazhar Zorlu

Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to generate 12.49 times more return on investment than Mazhar Zorlu. However, Turkiye Petrol is 12.49 times more volatile than Mazhar Zorlu Holding. It trades about 0.05 of its potential returns per unit of risk. Mazhar Zorlu Holding is currently generating about -0.02 per unit of risk. If you would invest  5,810  in Turkiye Petrol Rafinerileri on September 24, 2024 and sell it today you would earn a total of  8,740  from holding Turkiye Petrol Rafinerileri or generate 150.43% return on investment over 90 days.

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

Turkiye Petrol Rafinerileri  vs.  Mazhar Zorlu Holding

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.

Mazhar Zorlu Holding

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mazhar Zorlu Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Mazhar Zorlu is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Turkiye Petrol and Mazhar Zorlu

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

The idea behind Turkiye Petrol Rafinerileri and Mazhar Zorlu Holding 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.