Correlation Between Turcas Petrol and Turkish Airlines
Can any of the company-specific risk be diversified away by investing in both Turcas Petrol and Turkish Airlines 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 Turcas Petrol and Turkish Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turcas Petrol AS and Turkish Airlines, you can compare the effects of market volatilities on Turcas Petrol and Turkish Airlines 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 Turcas Petrol with a short position of Turkish Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turcas Petrol and Turkish Airlines.
Diversification Opportunities for Turcas Petrol and Turkish Airlines
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turcas and Turkish is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Turcas Petrol AS and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines and Turcas Petrol 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 Turcas Petrol AS are associated (or correlated) with Turkish Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkish Airlines has no effect on the direction of Turcas Petrol i.e., Turcas Petrol and Turkish Airlines go up and down completely randomly.
Pair Corralation between Turcas Petrol and Turkish Airlines
Assuming the 90 days trading horizon Turcas Petrol AS is expected to generate 1.27 times more return on investment than Turkish Airlines. However, Turcas Petrol is 1.27 times more volatile than Turkish Airlines. It trades about 0.02 of its potential returns per unit of risk. Turkish Airlines is currently generating about -0.04 per unit of risk. If you would invest 2,336 in Turcas Petrol AS on September 3, 2024 and sell it today you would earn a total of 20.00 from holding Turcas Petrol AS or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turcas Petrol AS vs. Turkish Airlines
Performance |
| Timeline |
| Turcas Petrol AS |
| Turkish Airlines |
Turcas Petrol and Turkish Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turcas Petrol and Turkish Airlines
The main advantage of trading using opposite Turcas Petrol and Turkish Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turcas Petrol position performs unexpectedly, Turkish Airlines 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 Turkish Airlines will offset losses from the drop in Turkish Airlines' long position.| Turcas Petrol vs. Turkish Airlines | Turcas Petrol vs. Akcansa Cimento Sanayi | Turcas Petrol vs. Sekerbank TAS | Turcas Petrol vs. Creditwest Faktoring AS |
| Turkish Airlines vs. Turkiye Petrol Rafinerileri | Turkish Airlines vs. Koc Holding AS | Turkish Airlines vs. Arcelik AS | Turkish Airlines vs. Turkiye Garanti 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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