Correlation Between Pegasus Hava and Otokar Otomotiv
Can any of the company-specific risk be diversified away by investing in both Pegasus Hava and Otokar Otomotiv 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 Otokar Otomotiv 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 Otokar Otomotiv ve, you can compare the effects of market volatilities on Pegasus Hava and Otokar Otomotiv 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 Otokar Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hava and Otokar Otomotiv.
Diversification Opportunities for Pegasus Hava and Otokar Otomotiv
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pegasus and Otokar is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hava Tasimaciligi and Otokar Otomotiv ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otokar Otomotiv ve 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 Otokar Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otokar Otomotiv ve has no effect on the direction of Pegasus Hava i.e., Pegasus Hava and Otokar Otomotiv go up and down completely randomly.
Pair Corralation between Pegasus Hava and Otokar Otomotiv
Assuming the 90 days trading horizon Pegasus Hava Tasimaciligi is expected to generate 1.03 times more return on investment than Otokar Otomotiv. However, Pegasus Hava is 1.03 times more volatile than Otokar Otomotiv ve. It trades about 0.02 of its potential returns per unit of risk. Otokar Otomotiv ve is currently generating about -0.01 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pegasus Hava Tasimaciligi vs. Otokar Otomotiv ve
Performance |
| Timeline |
| Pegasus Hava Tasimaciligi |
| Otokar Otomotiv ve |
Pegasus Hava and Otokar Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegasus Hava and Otokar Otomotiv
The main advantage of trading using opposite Pegasus Hava and Otokar Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hava position performs unexpectedly, Otokar Otomotiv 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 Otokar Otomotiv will offset losses from the drop in Otokar Otomotiv'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 |
| Otokar Otomotiv vs. QNB Finans Finansal | Otokar Otomotiv vs. Pamel Yenilenebilir Elektrik | Otokar Otomotiv vs. Brisa Bridgestone Sabanci | Otokar Otomotiv 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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