Correlation Between Pegasus Hava and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Pegasus Hava and Coca Cola 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 Coca Cola 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 Coca Cola Icecek AS, you can compare the effects of market volatilities on Pegasus Hava and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hava and Coca Cola.
Diversification Opportunities for Pegasus Hava and Coca Cola
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pegasus and Coca is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hava Tasimaciligi and Coca Cola Icecek AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Icecek 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola Icecek has no effect on the direction of Pegasus Hava i.e., Pegasus Hava and Coca Cola go up and down completely randomly.
Pair Corralation between Pegasus Hava and Coca Cola
Assuming the 90 days trading horizon Pegasus Hava Tasimaciligi is expected to generate 0.86 times more return on investment than Coca Cola. However, Pegasus Hava Tasimaciligi is 1.16 times less risky than Coca Cola. It trades about 0.02 of its potential returns per unit of risk. Coca Cola Icecek AS is currently generating about -0.08 per unit of risk. 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pegasus Hava Tasimaciligi vs. Coca Cola Icecek AS
Performance |
| Timeline |
| Pegasus Hava Tasimaciligi |
| Coca Cola Icecek |
Pegasus Hava and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegasus Hava and Coca Cola
The main advantage of trading using opposite Pegasus Hava and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hava position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| Pegasus Hava vs. QNB Finans Finansal | Pegasus Hava vs. Pamel Yenilenebilir Elektrik | Pegasus Hava vs. Brisa Bridgestone Sabanci | Pegasus Hava vs. Dogus Gayrimenkul Yatirim |
| Coca Cola vs. Is Yatirim Ortakligi | Coca Cola vs. Creditwest Faktoring AS | Coca Cola vs. Turk Telekomunikasyon AS | Coca Cola vs. Aygaz AS |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |