Correlation Between Turkish Airlines and CarrefourSA Carrefour
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and CarrefourSA Carrefour 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 CarrefourSA Carrefour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and CarrefourSA Carrefour Sabanci, you can compare the effects of market volatilities on Turkish Airlines and CarrefourSA Carrefour 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 CarrefourSA Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and CarrefourSA Carrefour.
Diversification Opportunities for Turkish Airlines and CarrefourSA Carrefour
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkish and CarrefourSA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and CarrefourSA Carrefour Sabanci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CarrefourSA Carrefour 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 CarrefourSA Carrefour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CarrefourSA Carrefour has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and CarrefourSA Carrefour go up and down completely randomly.
Pair Corralation between Turkish Airlines and CarrefourSA Carrefour
Assuming the 90 days trading horizon Turkish Airlines is expected to under-perform the CarrefourSA Carrefour. But the stock apears to be less risky and, when comparing its historical volatility, Turkish Airlines is 1.13 times less risky than CarrefourSA Carrefour. The stock trades about -0.11 of its potential returns per unit of risk. The CarrefourSA Carrefour Sabanci is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 8,820 in CarrefourSA Carrefour Sabanci on January 8, 2025 and sell it today you would lose (650.00) from holding CarrefourSA Carrefour Sabanci or give up 7.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkish Airlines vs. CarrefourSA Carrefour Sabanci
Performance |
| Timeline |
| Turkish Airlines |
| CarrefourSA Carrefour |
Turkish Airlines and CarrefourSA Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and CarrefourSA Carrefour
The main advantage of trading using opposite Turkish Airlines and CarrefourSA Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, CarrefourSA Carrefour 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 CarrefourSA Carrefour will offset losses from the drop in CarrefourSA Carrefour'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 |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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