Correlation Between Galatasaray Sportif and Turkish Airlines
Can any of the company-specific risk be diversified away by investing in both Galatasaray Sportif 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 Galatasaray Sportif and Turkish Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galatasaray Sportif Sinai and Turkish Airlines, you can compare the effects of market volatilities on Galatasaray Sportif 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 Galatasaray Sportif with a short position of Turkish Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galatasaray Sportif and Turkish Airlines.
Diversification Opportunities for Galatasaray Sportif and Turkish Airlines
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galatasaray and Turkish is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines and Galatasaray Sportif 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 Galatasaray Sportif Sinai 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 Galatasaray Sportif i.e., Galatasaray Sportif and Turkish Airlines go up and down completely randomly.
Pair Corralation between Galatasaray Sportif and Turkish Airlines
Assuming the 90 days trading horizon Galatasaray Sportif Sinai is expected to under-perform the Turkish Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Galatasaray Sportif Sinai is 1.36 times less risky than Turkish Airlines. The stock trades about -0.06 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 27,800 in Turkish Airlines on August 27, 2024 and sell it today you would earn a total of 1,825 from holding Turkish Airlines or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galatasaray Sportif Sinai vs. Turkish Airlines
Performance |
| Timeline |
| Galatasaray Sportif Sinai |
| Turkish Airlines |
Galatasaray Sportif and Turkish Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galatasaray Sportif and Turkish Airlines
The main advantage of trading using opposite Galatasaray Sportif and Turkish Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galatasaray Sportif 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.| Galatasaray Sportif vs. Koza Anadolu Metal | Galatasaray Sportif vs. Turkish Airlines | Galatasaray Sportif vs. Akbank TAS | Galatasaray Sportif vs. Turkiye Kalkinma Bankasi |
| Turkish Airlines vs. QNB Finans Finansal | Turkish Airlines vs. Pamel Yenilenebilir Elektrik | Turkish Airlines vs. Brisa Bridgestone Sabanci | Turkish Airlines vs. Dogus Gayrimenkul Yatirim |
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 Directory module to find actively traded commodities issued by global exchanges.
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