Correlation Between CarrefourSA Carrefour and Turkish Airlines
Can any of the company-specific risk be diversified away by investing in both CarrefourSA Carrefour 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 CarrefourSA Carrefour and Turkish Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CarrefourSA Carrefour Sabanci and Turkish Airlines, you can compare the effects of market volatilities on CarrefourSA Carrefour 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 CarrefourSA Carrefour with a short position of Turkish Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of CarrefourSA Carrefour and Turkish Airlines.
Diversification Opportunities for CarrefourSA Carrefour and Turkish Airlines
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CarrefourSA and Turkish is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CarrefourSA Carrefour Sabanci and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines and CarrefourSA Carrefour 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 CarrefourSA Carrefour Sabanci 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 CarrefourSA Carrefour i.e., CarrefourSA Carrefour and Turkish Airlines go up and down completely randomly.
Pair Corralation between CarrefourSA Carrefour and Turkish Airlines
Assuming the 90 days trading horizon CarrefourSA Carrefour Sabanci is expected to generate 1.63 times more return on investment than Turkish Airlines. However, CarrefourSA Carrefour is 1.63 times more volatile than Turkish Airlines. It trades about 0.05 of its potential returns per unit of risk. Turkish Airlines is currently generating about 0.03 per unit of risk. If you would invest 7,360 in CarrefourSA Carrefour Sabanci on September 12, 2024 and sell it today you would earn a total of 3,490 from holding CarrefourSA Carrefour Sabanci or generate 47.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
CarrefourSA Carrefour Sabanci vs. Turkish Airlines
Performance |
| Timeline |
| CarrefourSA Carrefour |
| Turkish Airlines |
CarrefourSA Carrefour and Turkish Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CarrefourSA Carrefour and Turkish Airlines
The main advantage of trading using opposite CarrefourSA Carrefour and Turkish Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CarrefourSA Carrefour 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.| CarrefourSA Carrefour vs. Turkish Airlines | CarrefourSA Carrefour vs. Akbank TAS | CarrefourSA Carrefour vs. MEGA METAL | CarrefourSA Carrefour vs. Sekerbank TAS |
| Turkish Airlines vs. Aselsan Elektronik Sanayi | Turkish Airlines vs. Turkiye Petrol Rafinerileri | Turkish Airlines vs. Pegasus Hava Tasimaciligi | Turkish Airlines vs. Turkiye Sise ve |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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