Correlation Between Turk Traktor and Turkish Airlines
Can any of the company-specific risk be diversified away by investing in both Turk Traktor 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 Turk Traktor and Turkish Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turk Traktor ve and Turkish Airlines, you can compare the effects of market volatilities on Turk Traktor 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 Turk Traktor with a short position of Turkish Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Traktor and Turkish Airlines.
Diversification Opportunities for Turk Traktor and Turkish Airlines
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Turk and Turkish is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Turk Traktor ve and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines and Turk Traktor 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 Turk Traktor ve 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 Turk Traktor i.e., Turk Traktor and Turkish Airlines go up and down completely randomly.
Pair Corralation between Turk Traktor and Turkish Airlines
Assuming the 90 days trading horizon Turk Traktor ve is expected to under-perform the Turkish Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Turk Traktor ve is 1.01 times less risky than Turkish Airlines. The stock trades about -0.08 of its potential returns per unit of risk. The Turkish Airlines is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 30,050 in Turkish Airlines on December 6, 2024 and sell it today you would earn a total of 2,575 from holding Turkish Airlines or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turk Traktor ve vs. Turkish Airlines
Performance |
| Timeline |
| Turk Traktor ve |
| Turkish Airlines |
Turk Traktor and Turkish Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Traktor and Turkish Airlines
The main advantage of trading using opposite Turk Traktor and Turkish Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Traktor 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.| Turk Traktor vs. Ford Otomotiv Sanayi | ||
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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