Correlation Between TAV Havalimanlari and Tekfen Holding
Can any of the company-specific risk be diversified away by investing in both TAV Havalimanlari and Tekfen Holding 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 TAV Havalimanlari and Tekfen Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAV Havalimanlari Holding and Tekfen Holding AS, you can compare the effects of market volatilities on TAV Havalimanlari and Tekfen Holding 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 TAV Havalimanlari with a short position of Tekfen Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAV Havalimanlari and Tekfen Holding.
Diversification Opportunities for TAV Havalimanlari and Tekfen Holding
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TAV and Tekfen is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding TAV Havalimanlari Holding and Tekfen Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekfen Holding AS and TAV Havalimanlari 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 TAV Havalimanlari Holding are associated (or correlated) with Tekfen Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekfen Holding AS has no effect on the direction of TAV Havalimanlari i.e., TAV Havalimanlari and Tekfen Holding go up and down completely randomly.
Pair Corralation between TAV Havalimanlari and Tekfen Holding
Assuming the 90 days trading horizon TAV Havalimanlari is expected to generate 3.66 times less return on investment than Tekfen Holding. But when comparing it to its historical volatility, TAV Havalimanlari Holding is 1.38 times less risky than Tekfen Holding. It trades about 0.05 of its potential returns per unit of risk. Tekfen Holding AS is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,290 in Tekfen Holding AS on September 3, 2024 and sell it today you would earn a total of 2,910 from holding Tekfen Holding AS or generate 55.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TAV Havalimanlari Holding vs. Tekfen Holding AS
Performance |
| Timeline |
| TAV Havalimanlari Holding |
| Tekfen Holding AS |
TAV Havalimanlari and Tekfen Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAV Havalimanlari and Tekfen Holding
The main advantage of trading using opposite TAV Havalimanlari and Tekfen Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAV Havalimanlari position performs unexpectedly, Tekfen Holding 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 Tekfen Holding will offset losses from the drop in Tekfen Holding's long position.| TAV Havalimanlari vs. Turkiye Sise ve | TAV Havalimanlari vs. Pegasus Hava Tasimaciligi | TAV Havalimanlari vs. Turkish Airlines | TAV Havalimanlari vs. Turkiye Petrol Rafinerileri |
| Tekfen Holding vs. Turkiye Sise ve | Tekfen Holding vs. Turkiye Petrol Rafinerileri | Tekfen Holding vs. Petkim Petrokimya Holding | Tekfen Holding vs. TAV Havalimanlari 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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