Correlation Between Pegasus Hava and Aselsan Elektronik
Can any of the company-specific risk be diversified away by investing in both Pegasus Hava and Aselsan Elektronik 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 Pegasus Hava and Aselsan Elektronik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pegasus Hava Tasimaciligi and Aselsan Elektronik Sanayi, you can compare the effects of market volatilities on Pegasus Hava and Aselsan Elektronik 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 Pegasus Hava with a short position of Aselsan Elektronik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hava and Aselsan Elektronik.
Diversification Opportunities for Pegasus Hava and Aselsan Elektronik
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pegasus and Aselsan is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hava Tasimaciligi and Aselsan Elektronik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aselsan Elektronik Sanayi and Pegasus Hava 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 Pegasus Hava Tasimaciligi are associated (or correlated) with Aselsan Elektronik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aselsan Elektronik Sanayi has no effect on the direction of Pegasus Hava i.e., Pegasus Hava and Aselsan Elektronik go up and down completely randomly.
Pair Corralation between Pegasus Hava and Aselsan Elektronik
Assuming the 90 days trading horizon Pegasus Hava Tasimaciligi is expected to generate 3.19 times more return on investment than Aselsan Elektronik. However, Pegasus Hava is 3.19 times more volatile than Aselsan Elektronik Sanayi. It trades about 0.05 of its potential returns per unit of risk. Aselsan Elektronik Sanayi is currently generating about 0.06 per unit of risk. If you would invest 9,657 in Pegasus Hava Tasimaciligi on September 3, 2024 and sell it today you would earn a total of 12,123 from holding Pegasus Hava Tasimaciligi or generate 125.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pegasus Hava Tasimaciligi vs. Aselsan Elektronik Sanayi
Performance |
| Timeline |
| Pegasus Hava Tasimaciligi |
| Aselsan Elektronik Sanayi |
Pegasus Hava and Aselsan Elektronik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegasus Hava and Aselsan Elektronik
The main advantage of trading using opposite Pegasus Hava and Aselsan Elektronik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hava position performs unexpectedly, Aselsan Elektronik 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 Aselsan Elektronik will offset losses from the drop in Aselsan Elektronik's long position.| Pegasus Hava vs. Turkiye Petrol Rafinerileri | Pegasus Hava vs. Koc Holding AS | Pegasus Hava vs. Arcelik AS | Pegasus Hava vs. Turkiye Garanti Bankasi |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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