Correlation Between Turkish Airlines and Aselsan Elektronik
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Aselsan Elektronik 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 Turkish Airlines and Aselsan Elektronik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Aselsan Elektronik Sanayi, you can compare the effects of market volatilities on Turkish Airlines and Aselsan Elektronik 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 Turkish Airlines with a short position of Aselsan Elektronik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Aselsan Elektronik.
Diversification Opportunities for Turkish Airlines and Aselsan Elektronik
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkish and Aselsan is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Aselsan Elektronik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aselsan Elektronik Sanayi and Turkish Airlines 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 Turkish Airlines are associated (or correlated) with Aselsan Elektronik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aselsan Elektronik Sanayi has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Aselsan Elektronik go up and down completely randomly.
Pair Corralation between Turkish Airlines and Aselsan Elektronik
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 2.22 times less return on investment than Aselsan Elektronik. But when comparing it to its historical volatility, Turkish Airlines is 1.23 times less risky than Aselsan Elektronik. It trades about 0.33 of its potential returns per unit of risk. Aselsan Elektronik Sanayi is currently generating about 0.6 of returns per unit of risk over similar time horizon. If you would invest 7,350 in Aselsan Elektronik Sanayi on November 2, 2024 and sell it today you would earn a total of 1,530 from holding Aselsan Elektronik Sanayi or generate 20.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkish Airlines vs. Aselsan Elektronik Sanayi
Performance |
| Timeline |
| Turkish Airlines |
| Aselsan Elektronik Sanayi |
Turkish Airlines and Aselsan Elektronik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Aselsan Elektronik
The main advantage of trading using opposite Turkish Airlines and Aselsan Elektronik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Aselsan Elektronik 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 Aselsan Elektronik will offset losses from the drop in Aselsan Elektronik's long position.| Turkish Airlines vs. Aselsan Elektronik Sanayi | Turkish Airlines vs. Turkiye Petrol Rafinerileri | Turkish Airlines vs. Pegasus Hava Tasimaciligi | Turkish Airlines vs. Turkiye Sise ve |
| Aselsan Elektronik vs. Turkish Airlines | Aselsan Elektronik vs. Turkiye Petrol Rafinerileri | Aselsan Elektronik vs. Petkim Petrokimya Holding | Aselsan Elektronik vs. Eregli Demir ve |
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 Stocks Directory module to find actively traded stocks across global markets.
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