Correlation Between Turkish Airlines and Turkiye Is
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Turkiye Is 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 Turkiye Is into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Turkiye Is Bankasi, you can compare the effects of market volatilities on Turkish Airlines and Turkiye Is 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 Turkiye Is. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Turkiye Is.
Diversification Opportunities for Turkish Airlines and Turkiye Is
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkish and Turkiye is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Turkiye Is Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Is Bankasi 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 Turkiye Is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Is Bankasi has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Turkiye Is go up and down completely randomly.
Pair Corralation between Turkish Airlines and Turkiye Is
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 0.76 times more return on investment than Turkiye Is. However, Turkish Airlines is 1.32 times less risky than Turkiye Is. It trades about -0.03 of its potential returns per unit of risk. Turkiye Is Bankasi is currently generating about -0.05 per unit of risk. If you would invest 31,200 in Turkish Airlines on August 31, 2024 and sell it today you would lose (2,700) from holding Turkish Airlines or give up 8.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkish Airlines vs. Turkiye Is Bankasi
Performance |
| Timeline |
| Turkish Airlines |
| Turkiye Is Bankasi |
Turkish Airlines and Turkiye Is Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Turkiye Is
The main advantage of trading using opposite Turkish Airlines and Turkiye Is positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Turkiye Is 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 Turkiye Is will offset losses from the drop in Turkiye Is' long position.| Turkish Airlines vs. Aselsan Elektronik Sanayi | Turkish Airlines vs. Turkiye Petrol Rafinerileri | Turkish Airlines vs. Turkiye Sise ve | Turkish Airlines vs. Eregli Demir ve |
| Turkiye Is vs. Turkiye Garanti Bankasi | Turkiye Is vs. Akbank TAS | Turkiye Is vs. Yapi ve Kredi | Turkiye Is 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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