Correlation Between Koc Holding and Pegasus Hava
Can any of the company-specific risk be diversified away by investing in both Koc Holding 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 Koc Holding and Pegasus Hava into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koc Holding AS and Pegasus Hava Tasimaciligi, you can compare the effects of market volatilities on Koc Holding 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 Koc Holding with a short position of Pegasus Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Pegasus Hava.
Diversification Opportunities for Koc Holding and Pegasus Hava
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Koc and Pegasus is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS 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 Koc Holding 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 Koc Holding AS 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 Koc Holding i.e., Koc Holding and Pegasus Hava go up and down completely randomly.
Pair Corralation between Koc Holding and Pegasus Hava
Assuming the 90 days trading horizon Koc Holding AS is expected to under-perform the Pegasus Hava. But the stock apears to be less risky and, when comparing its historical volatility, Koc Holding AS is 1.06 times less risky than Pegasus Hava. The stock trades about -0.04 of its potential returns per unit of risk. The Pegasus Hava Tasimaciligi is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 21,033 in Pegasus Hava Tasimaciligi on September 3, 2024 and sell it today you would earn a total of 747.00 from holding Pegasus Hava Tasimaciligi or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holding AS vs. Pegasus Hava Tasimaciligi
Performance |
| Timeline |
| Koc Holding AS |
| Pegasus Hava Tasimaciligi |
Koc Holding and Pegasus Hava Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Pegasus Hava
The main advantage of trading using opposite Koc Holding and Pegasus Hava positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding 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.| Koc Holding vs. Haci Omer Sabanci | Koc Holding vs. Turkiye Sise ve | Koc Holding vs. Turkiye Petrol Rafinerileri | Koc Holding vs. Turkiye Garanti Bankasi |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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