Correlation Between Otokar Otomotiv and Pegasus Hava
Can any of the company-specific risk be diversified away by investing in both Otokar Otomotiv 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 Otokar Otomotiv and Pegasus Hava into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Otokar Otomotiv ve and Pegasus Hava Tasimaciligi, you can compare the effects of market volatilities on Otokar Otomotiv 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 Otokar Otomotiv with a short position of Pegasus Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of Otokar Otomotiv and Pegasus Hava.
Diversification Opportunities for Otokar Otomotiv and Pegasus Hava
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Otokar and Pegasus is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Otokar Otomotiv ve 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 Otokar 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 Otokar Otomotiv ve 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 Otokar Otomotiv i.e., Otokar Otomotiv and Pegasus Hava go up and down completely randomly.
Pair Corralation between Otokar Otomotiv and Pegasus Hava
Assuming the 90 days trading horizon Otokar Otomotiv ve is expected to under-perform the Pegasus Hava. But the stock apears to be less risky and, when comparing its historical volatility, Otokar Otomotiv ve is 1.03 times less risky than Pegasus Hava. The stock trades about -0.01 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 22,620 in Pegasus Hava Tasimaciligi on August 28, 2024 and sell it today you would earn a total of 260.00 from holding Pegasus Hava Tasimaciligi or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Otokar Otomotiv ve vs. Pegasus Hava Tasimaciligi
Performance |
| Timeline |
| Otokar Otomotiv ve |
| Pegasus Hava Tasimaciligi |
Otokar Otomotiv and Pegasus Hava Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Otokar Otomotiv and Pegasus Hava
The main advantage of trading using opposite Otokar Otomotiv and Pegasus Hava positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Otokar Otomotiv 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.| Otokar Otomotiv vs. QNB Finans Finansal | Otokar Otomotiv vs. Pamel Yenilenebilir Elektrik | Otokar Otomotiv vs. Brisa Bridgestone Sabanci | Otokar Otomotiv vs. Dogus Gayrimenkul Yatirim |
| Pegasus Hava vs. QNB Finans Finansal | Pegasus Hava vs. Pamel Yenilenebilir Elektrik | Pegasus Hava vs. Brisa Bridgestone Sabanci | Pegasus Hava 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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