Correlation Between Ford Otomotiv and Turkish Airlines
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv 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 Ford Otomotiv and Turkish Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Otomotiv Sanayi and Turkish Airlines, you can compare the effects of market volatilities on Ford Otomotiv 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 Ford Otomotiv with a short position of Turkish Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and Turkish Airlines.
Diversification Opportunities for Ford Otomotiv and Turkish Airlines
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ford and Turkish is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines and Ford Otomotiv 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 Ford Otomotiv Sanayi 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 Ford Otomotiv i.e., Ford Otomotiv and Turkish Airlines go up and down completely randomly.
Pair Corralation between Ford Otomotiv and Turkish Airlines
Assuming the 90 days trading horizon Ford Otomotiv Sanayi is expected to under-perform the Turkish Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Ford Otomotiv Sanayi is 1.48 times less risky than Turkish Airlines. The stock trades about -0.16 of its potential returns per unit of risk. The Turkish Airlines is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 28,950 in Turkish Airlines on October 20, 2024 and sell it today you would earn a total of 1,400 from holding Turkish Airlines or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Otomotiv Sanayi vs. Turkish Airlines
Performance |
| Timeline |
| Ford Otomotiv Sanayi |
| Turkish Airlines |
Ford Otomotiv and Turkish Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford Otomotiv and Turkish Airlines
The main advantage of trading using opposite Ford Otomotiv and Turkish Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv 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.| Ford Otomotiv vs. Eregli Demir ve | Ford Otomotiv vs. Tofas Turk Otomobil | Ford Otomotiv vs. Turkiye Petrol Rafinerileri | Ford Otomotiv vs. Turkiye Sise ve |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |