Correlation Between Turkiye Sigorta and Ihlas Yayin
Can any of the company-specific risk be diversified away by investing in both Turkiye Sigorta and Ihlas Yayin 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 Turkiye Sigorta and Ihlas Yayin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Sigorta AS and Ihlas Yayin Holding, you can compare the effects of market volatilities on Turkiye Sigorta and Ihlas Yayin 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 Turkiye Sigorta with a short position of Ihlas Yayin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sigorta and Ihlas Yayin.
Diversification Opportunities for Turkiye Sigorta and Ihlas Yayin
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Turkiye and Ihlas is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sigorta AS and Ihlas Yayin Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihlas Yayin Holding and Turkiye Sigorta 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 Turkiye Sigorta AS are associated (or correlated) with Ihlas Yayin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihlas Yayin Holding has no effect on the direction of Turkiye Sigorta i.e., Turkiye Sigorta and Ihlas Yayin go up and down completely randomly.
Pair Corralation between Turkiye Sigorta and Ihlas Yayin
Assuming the 90 days trading horizon Turkiye Sigorta is expected to generate 1.05 times less return on investment than Ihlas Yayin. But when comparing it to its historical volatility, Turkiye Sigorta AS is 1.86 times less risky than Ihlas Yayin. It trades about 0.06 of its potential returns per unit of risk. Ihlas Yayin Holding is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 268.00 in Ihlas Yayin Holding on November 7, 2024 and sell it today you would earn a total of 35.00 from holding Ihlas Yayin Holding or generate 13.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.51% |
| Values | Daily Returns |
Turkiye Sigorta AS vs. Ihlas Yayin Holding
Performance |
| Timeline |
| Turkiye Sigorta AS |
| Ihlas Yayin Holding |
Turkiye Sigorta and Ihlas Yayin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Sigorta and Ihlas Yayin
The main advantage of trading using opposite Turkiye Sigorta and Ihlas Yayin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sigorta position performs unexpectedly, Ihlas Yayin 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 Ihlas Yayin will offset losses from the drop in Ihlas Yayin's long position.| Turkiye Sigorta vs. Turk Telekomunikasyon AS | Turkiye Sigorta vs. Tekfen Holding AS | Turkiye Sigorta vs. Enerjisa Enerji AS | Turkiye Sigorta vs. Haci Omer Sabanci |
| Ihlas Yayin vs. Politeknik Metal Sanayi | Ihlas Yayin vs. Creditwest Faktoring AS | Ihlas Yayin vs. Turkish Airlines | Ihlas Yayin vs. Gentas Genel Metal |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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