Correlation Between Turkish Airlines and Tek Art
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Tek Art 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 Tek Art into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Tek Art Insaat Ticaret, you can compare the effects of market volatilities on Turkish Airlines and Tek Art 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 Tek Art. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Tek Art.
Diversification Opportunities for Turkish Airlines and Tek Art
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Turkish and Tek is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Tek Art Insaat Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tek Art Insaat 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 Tek Art. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tek Art Insaat has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Tek Art go up and down completely randomly.
Pair Corralation between Turkish Airlines and Tek Art
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 0.7 times more return on investment than Tek Art. However, Turkish Airlines is 1.42 times less risky than Tek Art. It trades about 0.07 of its potential returns per unit of risk. Tek Art Insaat Ticaret is currently generating about -0.05 per unit of risk. If you would invest 27,750 in Turkish Airlines on August 31, 2024 and sell it today you would earn a total of 750.00 from holding Turkish Airlines or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkish Airlines vs. Tek Art Insaat Ticaret
Performance |
| Timeline |
| Turkish Airlines |
| Tek Art Insaat |
Turkish Airlines and Tek Art Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Tek Art
The main advantage of trading using opposite Turkish Airlines and Tek Art positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Tek Art 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 Tek Art will offset losses from the drop in Tek Art's 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 |
| Tek Art vs. Politeknik Metal Sanayi | Tek Art vs. MEGA METAL | Tek Art vs. Turkish Airlines | Tek Art vs. Turkiye Kalkinma Bankasi |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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