Correlation Between Turkish Airlines and Ford Otomotiv
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Ford Otomotiv 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 Ford Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Ford Otomotiv Sanayi, you can compare the effects of market volatilities on Turkish Airlines and Ford Otomotiv 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 Ford Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Ford Otomotiv.
Diversification Opportunities for Turkish Airlines and Ford Otomotiv
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkish and Ford is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Ford Otomotiv Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ford Otomotiv 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 Ford Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Otomotiv Sanayi has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Ford Otomotiv go up and down completely randomly.
Pair Corralation between Turkish Airlines and Ford Otomotiv
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 0.95 times more return on investment than Ford Otomotiv. However, Turkish Airlines is 1.05 times less risky than Ford Otomotiv. It trades about 0.33 of its potential returns per unit of risk. Ford Otomotiv Sanayi is currently generating about 0.01 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkish Airlines vs. Ford Otomotiv Sanayi
Performance |
| Timeline |
| Turkish Airlines |
| Ford Otomotiv Sanayi |
Turkish Airlines and Ford Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Ford Otomotiv
The main advantage of trading using opposite Turkish Airlines and Ford Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Ford Otomotiv 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 Ford Otomotiv will offset losses from the drop in Ford Otomotiv'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 |
| Ford Otomotiv vs. Eregli Demir ve | Ford Otomotiv vs. Tofas Turk Otomobil | Ford Otomotiv vs. Turkiye Petrol Rafinerileri | Ford Otomotiv vs. Turkiye Sise 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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