Correlation Between Turkish Airlines and Cuhadaroglu Metal
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Cuhadaroglu Metal 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 Cuhadaroglu Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Cuhadaroglu Metal Sanayi, you can compare the effects of market volatilities on Turkish Airlines and Cuhadaroglu Metal 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 Cuhadaroglu Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Cuhadaroglu Metal.
Diversification Opportunities for Turkish Airlines and Cuhadaroglu Metal
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turkish and Cuhadaroglu is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Cuhadaroglu Metal Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuhadaroglu Metal 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 Cuhadaroglu Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuhadaroglu Metal Sanayi has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Cuhadaroglu Metal go up and down completely randomly.
Pair Corralation between Turkish Airlines and Cuhadaroglu Metal
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 0.71 times more return on investment than Cuhadaroglu Metal. However, Turkish Airlines is 1.41 times less risky than Cuhadaroglu Metal. It trades about 0.33 of its potential returns per unit of risk. Cuhadaroglu Metal Sanayi is currently generating about -0.58 per unit of risk. If you would invest 28,750 in Turkish Airlines on November 2, 2024 and sell it today you would earn a total of 2,550 from holding Turkish Airlines or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkish Airlines vs. Cuhadaroglu Metal Sanayi
Performance |
| Timeline |
| Turkish Airlines |
| Cuhadaroglu Metal Sanayi |
Turkish Airlines and Cuhadaroglu Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Cuhadaroglu Metal
The main advantage of trading using opposite Turkish Airlines and Cuhadaroglu Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Cuhadaroglu Metal 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 Cuhadaroglu Metal will offset losses from the drop in Cuhadaroglu Metal'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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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