Correlation Between Turkish Airlines and Ideal Finansal
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Ideal Finansal 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 Ideal Finansal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Ideal Finansal Teknolojiler, you can compare the effects of market volatilities on Turkish Airlines and Ideal Finansal 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 Ideal Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Ideal Finansal.
Diversification Opportunities for Turkish Airlines and Ideal Finansal
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Turkish and Ideal is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Ideal Finansal Teknolojiler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ideal Finansal Tekno 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 Ideal Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ideal Finansal Tekno has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Ideal Finansal go up and down completely randomly.
Pair Corralation between Turkish Airlines and Ideal Finansal
Assuming the 90 days trading horizon Turkish Airlines is expected to under-perform the Ideal Finansal. But the stock apears to be less risky and, when comparing its historical volatility, Turkish Airlines is 2.52 times less risky than Ideal Finansal. The stock trades about -0.01 of its potential returns per unit of risk. The Ideal Finansal Teknolojiler is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 12,090 in Ideal Finansal Teknolojiler on November 28, 2024 and sell it today you would earn a total of 280.00 from holding Ideal Finansal Teknolojiler or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Turkish Airlines vs. Ideal Finansal Teknolojiler
Performance |
| Timeline |
| Turkish Airlines |
| Ideal Finansal Tekno |
Turkish Airlines and Ideal Finansal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Ideal Finansal
The main advantage of trading using opposite Turkish Airlines and Ideal Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Ideal Finansal 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 Ideal Finansal will offset losses from the drop in Ideal Finansal'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 |
| Ideal Finansal vs. Gentas Genel Metal | Ideal Finansal vs. KOC METALURJI | Ideal Finansal vs. Borlease Otomotiv AS | Ideal Finansal vs. Bms Birlesik Metal |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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