Correlation Between Turkish Airlines and GSD Holding
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and GSD 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 Turkish Airlines and GSD Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and GSD Holding AS, you can compare the effects of market volatilities on Turkish Airlines and GSD 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 Turkish Airlines with a short position of GSD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and GSD Holding.
Diversification Opportunities for Turkish Airlines and GSD Holding
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkish and GSD is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and GSD Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSD Holding AS 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 GSD Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSD Holding AS has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and GSD Holding go up and down completely randomly.
Pair Corralation between Turkish Airlines and GSD Holding
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 5.4 times less return on investment than GSD Holding. In addition to that, Turkish Airlines is 1.12 times more volatile than GSD Holding AS. It trades about 0.07 of its total potential returns per unit of risk. GSD Holding AS is currently generating about 0.4 per unit of volatility. If you would invest 345.00 in GSD Holding AS on August 25, 2024 and sell it today you would earn a total of 46.00 from holding GSD Holding AS or generate 13.33% 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. GSD Holding AS
Performance |
| Timeline |
| Turkish Airlines |
| GSD Holding AS |
Turkish Airlines and GSD Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and GSD Holding
The main advantage of trading using opposite Turkish Airlines and GSD Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, GSD 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 GSD Holding will offset losses from the drop in GSD Holding'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 |
| GSD Holding vs. Turkiye Is Bankasi | GSD Holding vs. Turkiye Is Bankasi | GSD Holding vs. Haci Omer Sabanci | GSD Holding vs. Turkiye Garanti Bankasi |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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