Correlation Between Turkish Airlines and Imas Makina
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Imas Makina 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 Imas Makina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Imas Makina Sanayi, you can compare the effects of market volatilities on Turkish Airlines and Imas Makina 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 Imas Makina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Imas Makina.
Diversification Opportunities for Turkish Airlines and Imas Makina
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkish and Imas is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Imas Makina Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imas Makina 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 Imas Makina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imas Makina Sanayi has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Imas Makina go up and down completely randomly.
Pair Corralation between Turkish Airlines and Imas Makina
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 1.71 times less return on investment than Imas Makina. But when comparing it to its historical volatility, Turkish Airlines is 1.55 times less risky than Imas Makina. It trades about 0.12 of its potential returns per unit of risk. Imas Makina Sanayi is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 275.00 in Imas Makina Sanayi on September 13, 2024 and sell it today you would earn a total of 25.00 from holding Imas Makina Sanayi or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Turkish Airlines vs. Imas Makina Sanayi
Performance |
| Timeline |
| Turkish Airlines |
| Imas Makina Sanayi |
Turkish Airlines and Imas Makina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Imas Makina
The main advantage of trading using opposite Turkish Airlines and Imas Makina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Imas Makina 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 Imas Makina will offset losses from the drop in Imas Makina'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 |
| Imas Makina vs. Koza Anadolu Metal | Imas Makina vs. E Data Teknoloji Pazarlama | Imas Makina vs. Cuhadaroglu Metal Sanayi | Imas Makina vs. Creditwest Faktoring AS |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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