Correlation Between Turkish Airlines and Oylum Sinai
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Oylum Sinai 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 Oylum Sinai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Oylum Sinai Yatirimlar, you can compare the effects of market volatilities on Turkish Airlines and Oylum Sinai 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 Oylum Sinai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Oylum Sinai.
Diversification Opportunities for Turkish Airlines and Oylum Sinai
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Turkish and Oylum is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Oylum Sinai Yatirimlar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oylum Sinai Yatirimlar 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 Oylum Sinai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oylum Sinai Yatirimlar has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Oylum Sinai go up and down completely randomly.
Pair Corralation between Turkish Airlines and Oylum Sinai
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 0.52 times more return on investment than Oylum Sinai. However, Turkish Airlines is 1.92 times less risky than Oylum Sinai. It trades about 0.29 of its potential returns per unit of risk. Oylum Sinai Yatirimlar is currently generating about -0.05 per unit of risk. If you would invest 29,800 in Turkish Airlines on November 4, 2024 and sell it today you would earn a total of 1,900 from holding Turkish Airlines or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkish Airlines vs. Oylum Sinai Yatirimlar
Performance |
| Timeline |
| Turkish Airlines |
| Oylum Sinai Yatirimlar |
Turkish Airlines and Oylum Sinai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Oylum Sinai
The main advantage of trading using opposite Turkish Airlines and Oylum Sinai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Oylum Sinai 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 Oylum Sinai will offset losses from the drop in Oylum Sinai'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 |
| Oylum Sinai vs. Creditwest Faktoring AS | Oylum Sinai vs. Mackolik Internet Hizmetleri | Oylum Sinai vs. Koza Anadolu Metal | Oylum Sinai vs. Borlease Otomotiv 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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