Correlation Between Turkish Airlines and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Turkiye Petrol 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 Petrol 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 Petrol Rafinerileri, you can compare the effects of market volatilities on Turkish Airlines and Turkiye Petrol 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 Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Turkiye Petrol.
Diversification Opportunities for Turkish Airlines and Turkiye Petrol
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Turkish and Turkiye is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Turkiye Petrol Rafinerileri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Petrol Rafin 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 Petrol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Petrol Rafin has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Turkiye Petrol go up and down completely randomly.
Pair Corralation between Turkish Airlines and Turkiye Petrol
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 0.96 times more return on investment than Turkiye Petrol. However, Turkish Airlines is 1.04 times less risky than Turkiye Petrol. It trades about 0.33 of its potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about -0.11 per unit of risk. If you would invest 28,750 in Turkish Airlines on November 2, 2024 and sell it today you would earn a total of 2,550 from holding Turkish Airlines or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkish Airlines vs. Turkiye Petrol Rafinerileri
Performance |
| Timeline |
| Turkish Airlines |
| Turkiye Petrol Rafin |
Turkish Airlines and Turkiye Petrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Turkiye Petrol
The main advantage of trading using opposite Turkish Airlines and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Turkiye Petrol 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 Petrol will offset losses from the drop in Turkiye Petrol'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 |
| Turkiye Petrol vs. Eregli Demir ve | Turkiye Petrol vs. Turkiye Sise ve | Turkiye Petrol vs. Turkish Airlines | Turkiye Petrol vs. Petkim Petrokimya Holding |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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