Correlation Between Pegasus Hava and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both Pegasus Hava and Turkiye Petrol 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 Turkiye Petrol 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 Turkiye Petrol Rafinerileri, you can compare the effects of market volatilities on Pegasus Hava and Turkiye Petrol 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 Turkiye Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hava and Turkiye Petrol.
Diversification Opportunities for Pegasus Hava and Turkiye Petrol
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pegasus and Turkiye is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hava Tasimaciligi and Turkiye Petrol Rafinerileri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Petrol Rafin 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 Turkiye Petrol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Petrol Rafin has no effect on the direction of Pegasus Hava i.e., Pegasus Hava and Turkiye Petrol go up and down completely randomly.
Pair Corralation between Pegasus Hava and Turkiye Petrol
Assuming the 90 days trading horizon Pegasus Hava Tasimaciligi is expected to under-perform the Turkiye Petrol. In addition to that, Pegasus Hava is 1.21 times more volatile than Turkiye Petrol Rafinerileri. It trades about -0.16 of its total potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about 0.06 per unit of volatility. If you would invest 14,370 in Turkiye Petrol Rafinerileri on August 24, 2024 and sell it today you would earn a total of 270.00 from holding Turkiye Petrol Rafinerileri or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pegasus Hava Tasimaciligi vs. Turkiye Petrol Rafinerileri
Performance |
| Timeline |
| Pegasus Hava Tasimaciligi |
| Turkiye Petrol Rafin |
Pegasus Hava and Turkiye Petrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegasus Hava and Turkiye Petrol
The main advantage of trading using opposite Pegasus Hava and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hava position performs unexpectedly, Turkiye Petrol 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 Turkiye Petrol will offset losses from the drop in Turkiye Petrol's long position.| Pegasus Hava vs. Turkish Airlines | Pegasus Hava vs. Turkiye Petrol Rafinerileri | Pegasus Hava vs. Aselsan Elektronik Sanayi | Pegasus Hava vs. TAV Havalimanlari Holding |
| Turkiye Petrol vs. Eregli Demir ve | Turkiye Petrol vs. Turkiye Sise ve | Turkiye Petrol vs. Turkish Airlines | Turkiye Petrol vs. Petkim Petrokimya Holding |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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