Correlation Between Turkiye Garanti and Pegasus Hava
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Pegasus Hava 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 Garanti and Pegasus Hava into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Garanti Bankasi and Pegasus Hava Tasimaciligi, you can compare the effects of market volatilities on Turkiye Garanti and Pegasus Hava 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 Garanti with a short position of Pegasus Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Pegasus Hava.
Diversification Opportunities for Turkiye Garanti and Pegasus Hava
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Turkiye and Pegasus is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Pegasus Hava Tasimaciligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasus Hava Tasimaciligi and Turkiye Garanti 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 Garanti Bankasi are associated (or correlated) with Pegasus Hava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasus Hava Tasimaciligi has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Pegasus Hava go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Pegasus Hava
Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 1.1 times more return on investment than Pegasus Hava. However, Turkiye Garanti is 1.1 times more volatile than Pegasus Hava Tasimaciligi. It trades about 0.09 of its potential returns per unit of risk. Pegasus Hava Tasimaciligi is currently generating about -0.03 per unit of risk. If you would invest 11,200 in Turkiye Garanti Bankasi on September 3, 2024 and sell it today you would earn a total of 850.00 from holding Turkiye Garanti Bankasi or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Pegasus Hava Tasimaciligi
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Pegasus Hava Tasimaciligi |
Turkiye Garanti and Pegasus Hava Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Pegasus Hava
The main advantage of trading using opposite Turkiye Garanti and Pegasus Hava positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Pegasus Hava 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 Pegasus Hava will offset losses from the drop in Pegasus Hava's long position.| Turkiye Garanti vs. Desa Deri Sanayi | Turkiye Garanti vs. Tumosan Motor ve | Turkiye Garanti vs. Ihlas Gazetecilik AS | Turkiye Garanti vs. Kuyas Yatirim AS |
| Pegasus Hava vs. Turkiye Petrol Rafinerileri | Pegasus Hava vs. Koc Holding AS | Pegasus Hava vs. Arcelik AS | Pegasus Hava vs. Turkiye Garanti Bankasi |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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