Correlation Between Akfen Yenilenebilir and Turkish Airlines
Can any of the company-specific risk be diversified away by investing in both Akfen Yenilenebilir and Turkish Airlines 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 Akfen Yenilenebilir and Turkish Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akfen Yenilenebilir Enerji and Turkish Airlines, you can compare the effects of market volatilities on Akfen Yenilenebilir and Turkish Airlines 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 Akfen Yenilenebilir with a short position of Turkish Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akfen Yenilenebilir and Turkish Airlines.
Diversification Opportunities for Akfen Yenilenebilir and Turkish Airlines
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akfen and Turkish is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Akfen Yenilenebilir Enerji and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines and Akfen Yenilenebilir 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 Akfen Yenilenebilir Enerji are associated (or correlated) with Turkish Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkish Airlines has no effect on the direction of Akfen Yenilenebilir i.e., Akfen Yenilenebilir and Turkish Airlines go up and down completely randomly.
Pair Corralation between Akfen Yenilenebilir and Turkish Airlines
Assuming the 90 days trading horizon Akfen Yenilenebilir is expected to generate 1.04 times less return on investment than Turkish Airlines. In addition to that, Akfen Yenilenebilir is 1.02 times more volatile than Turkish Airlines. It trades about 0.12 of its total potential returns per unit of risk. Turkish Airlines is currently generating about 0.12 per unit of volatility. If you would invest 27,750 in Turkish Airlines on August 30, 2024 and sell it today you would earn a total of 1,500 from holding Turkish Airlines or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akfen Yenilenebilir Enerji vs. Turkish Airlines
Performance |
| Timeline |
| Akfen Yenilenebilir |
| Turkish Airlines |
Akfen Yenilenebilir and Turkish Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akfen Yenilenebilir and Turkish Airlines
The main advantage of trading using opposite Akfen Yenilenebilir and Turkish Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akfen Yenilenebilir position performs unexpectedly, Turkish Airlines 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 Turkish Airlines will offset losses from the drop in Turkish Airlines' long position.| Akfen Yenilenebilir vs. Koza Anadolu Metal | Akfen Yenilenebilir vs. Turkish Airlines | Akfen Yenilenebilir vs. MEGA METAL | Akfen Yenilenebilir vs. Politeknik Metal Sanayi |
| Turkish Airlines vs. Haci Omer Sabanci | Turkish Airlines vs. Turkiye Petrol Rafinerileri | Turkish Airlines vs. Turkiye Garanti Bankasi | Turkish Airlines vs. Akbank TAS |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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