Correlation Between Turkish Airlines and Vakif Finansal
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Vakif 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 Vakif 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 Vakif Finansal Kiralama, you can compare the effects of market volatilities on Turkish Airlines and Vakif 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 Vakif Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Vakif Finansal.
Diversification Opportunities for Turkish Airlines and Vakif Finansal
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turkish and Vakif is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Vakif Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakif Finansal Kiralama 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 Vakif Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakif Finansal Kiralama has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Vakif Finansal go up and down completely randomly.
Pair Corralation between Turkish Airlines and Vakif Finansal
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 0.61 times more return on investment than Vakif Finansal. However, Turkish Airlines is 1.64 times less risky than Vakif Finansal. It trades about 0.05 of its potential returns per unit of risk. Vakif Finansal Kiralama is currently generating about 0.0 per unit of risk. If you would invest 28,500 in Turkish Airlines on August 29, 2024 and sell it today you would earn a total of 900.00 from holding Turkish Airlines or generate 3.16% 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. Vakif Finansal Kiralama
Performance |
| Timeline |
| Turkish Airlines |
| Vakif Finansal Kiralama |
Turkish Airlines and Vakif Finansal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Vakif Finansal
The main advantage of trading using opposite Turkish Airlines and Vakif Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Vakif 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 Vakif Finansal will offset losses from the drop in Vakif 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 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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