Correlation Between Turkish Airlines and Yesil Yatirim
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Yesil Yatirim 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 Yesil Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Yesil Yatirim Holding, you can compare the effects of market volatilities on Turkish Airlines and Yesil Yatirim 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 Yesil Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Yesil Yatirim.
Diversification Opportunities for Turkish Airlines and Yesil Yatirim
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkish and Yesil is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Yesil Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yatirim Holding 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 Yesil Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yatirim Holding has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Yesil Yatirim go up and down completely randomly.
Pair Corralation between Turkish Airlines and Yesil Yatirim
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 1.14 times less return on investment than Yesil Yatirim. But when comparing it to its historical volatility, Turkish Airlines is 1.97 times less risky than Yesil Yatirim. It trades about 0.04 of its potential returns per unit of risk. Yesil Yatirim Holding is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 219.00 in Yesil Yatirim Holding on September 4, 2024 and sell it today you would earn a total of 12.00 from holding Yesil Yatirim Holding or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkish Airlines vs. Yesil Yatirim Holding
Performance |
| Timeline |
| Turkish Airlines |
| Yesil Yatirim Holding |
Turkish Airlines and Yesil Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Yesil Yatirim
The main advantage of trading using opposite Turkish Airlines and Yesil Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Yesil Yatirim 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 Yesil Yatirim will offset losses from the drop in Yesil Yatirim's long position.| Turkish Airlines vs. Turkiye Petrol Rafinerileri | Turkish Airlines vs. Arcelik AS | Turkish Airlines vs. Turkiye Garanti Bankasi | Turkish Airlines vs. Akbank TAS |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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