Correlation Between Pegasus Hava and Migros Ticaret
Can any of the company-specific risk be diversified away by investing in both Pegasus Hava and Migros Ticaret 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 Migros Ticaret 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 Migros Ticaret AS, you can compare the effects of market volatilities on Pegasus Hava and Migros Ticaret 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 Migros Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hava and Migros Ticaret.
Diversification Opportunities for Pegasus Hava and Migros Ticaret
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pegasus and Migros is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hava Tasimaciligi and Migros Ticaret AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Migros Ticaret AS 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 Migros Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Migros Ticaret AS has no effect on the direction of Pegasus Hava i.e., Pegasus Hava and Migros Ticaret go up and down completely randomly.
Pair Corralation between Pegasus Hava and Migros Ticaret
Assuming the 90 days trading horizon Pegasus Hava Tasimaciligi is expected to under-perform the Migros Ticaret. But the stock apears to be less risky and, when comparing its historical volatility, Pegasus Hava Tasimaciligi is 1.17 times less risky than Migros Ticaret. The stock trades about -0.05 of its potential returns per unit of risk. The Migros Ticaret AS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 49,633 in Migros Ticaret AS on September 12, 2024 and sell it today you would earn a total of 3,167 from holding Migros Ticaret AS or generate 6.38% 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. Migros Ticaret AS
Performance |
| Timeline |
| Pegasus Hava Tasimaciligi |
| Migros Ticaret AS |
Pegasus Hava and Migros Ticaret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegasus Hava and Migros Ticaret
The main advantage of trading using opposite Pegasus Hava and Migros Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hava position performs unexpectedly, Migros Ticaret 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 Migros Ticaret will offset losses from the drop in Migros Ticaret's long position.| Pegasus Hava vs. Turkish Airlines | Pegasus Hava vs. Turkiye Petrol Rafinerileri | Pegasus Hava vs. Aselsan Elektronik Sanayi | Pegasus Hava vs. Petkim Petrokimya Holding |
| Migros Ticaret vs. BIM Birlesik Magazalar | Migros Ticaret vs. Turkiye Sise ve | Migros Ticaret vs. Pegasus Hava Tasimaciligi | Migros Ticaret vs. Turkiye Petrol Rafinerileri |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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