Correlation Between Turkiye Petrol and Ligand Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol and Ligand Pharmaceuticals 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 Ligand Pharmaceuticals 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 Ligand Pharmaceuticals General, you can compare the effects of market volatilities on Turkiye Petrol and Ligand Pharmaceuticals 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 Ligand Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and Ligand Pharmaceuticals.
Diversification Opportunities for Turkiye Petrol and Ligand Pharmaceuticals
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Turkiye and Ligand is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri and Ligand Pharmaceuticals General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ligand Pharmaceuticals 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 Ligand Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ligand Pharmaceuticals has no effect on the direction of Turkiye Petrol i.e., Turkiye Petrol and Ligand Pharmaceuticals go up and down completely randomly.
Pair Corralation between Turkiye Petrol and Ligand Pharmaceuticals
Assuming the 90 days trading horizon Turkiye Petrol is expected to generate 104.54 times less return on investment than Ligand Pharmaceuticals. But when comparing it to its historical volatility, Turkiye Petrol Rafinerileri is 49.69 times less risky than Ligand Pharmaceuticals. It trades about 0.18 of its potential returns per unit of risk. Ligand Pharmaceuticals General is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 0.12 in Ligand Pharmaceuticals General on January 19, 2024 and sell it today you would earn a total of 0.38 from holding Ligand Pharmaceuticals General or generate 316.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 15.66% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. Ligand Pharmaceuticals General
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| Ligand Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Turkiye Petrol and Ligand Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and Ligand Pharmaceuticals
The main advantage of trading using opposite Turkiye Petrol and Ligand Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol position performs unexpectedly, Ligand Pharmaceuticals 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 Ligand Pharmaceuticals will offset losses from the drop in Ligand Pharmaceuticals' long position.| Turkiye Petrol vs. Eregli Demir ve | Turkiye Petrol vs. Turkiye Sise ve | Turkiye Petrol vs. Turkish Airlines | Turkiye Petrol vs. Petkim Petrokimya Holding |
| Ligand Pharmaceuticals vs. Iridium Communications | Ligand Pharmaceuticals vs. Playtika Holding Corp | Ligand Pharmaceuticals vs. Weibo Corp | Ligand Pharmaceuticals vs. Enel Chile SA |
Check out your portfolio center.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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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