Correlation Between Turkish Airlines and ICU Girisim
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and ICU Girisim 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 ICU Girisim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and ICU Girisim Sermayesi, you can compare the effects of market volatilities on Turkish Airlines and ICU Girisim 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 ICU Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and ICU Girisim.
Diversification Opportunities for Turkish Airlines and ICU Girisim
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkish and ICU is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and ICU Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Girisim Sermayesi 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 ICU Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Girisim Sermayesi has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and ICU Girisim go up and down completely randomly.
Pair Corralation between Turkish Airlines and ICU Girisim
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 2.49 times less return on investment than ICU Girisim. But when comparing it to its historical volatility, Turkish Airlines is 1.69 times less risky than ICU Girisim. It trades about 0.07 of its potential returns per unit of risk. ICU Girisim Sermayesi is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 440.00 in ICU Girisim Sermayesi on September 19, 2024 and sell it today you would earn a total of 2,318 from holding ICU Girisim Sermayesi or generate 526.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Turkish Airlines vs. ICU Girisim Sermayesi
Performance |
| Timeline |
| Turkish Airlines |
| ICU Girisim Sermayesi |
Turkish Airlines and ICU Girisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and ICU Girisim
The main advantage of trading using opposite Turkish Airlines and ICU Girisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, ICU Girisim 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 ICU Girisim will offset losses from the drop in ICU Girisim's long position.| Turkish Airlines vs. Ege Endustri ve | Turkish Airlines vs. Turkiye Petrol Rafinerileri | Turkish Airlines vs. Turkiye Garanti Bankasi | Turkish Airlines vs. Ford Otomotiv Sanayi |
| ICU Girisim vs. Gentas Genel Metal | ICU Girisim vs. Turkish Airlines | ICU Girisim vs. Qnb Finansbank AS | ICU Girisim vs. Politeknik Metal Sanayi |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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