Correlation Between Ufuk Yatirim and Turkish Airlines
Can any of the company-specific risk be diversified away by investing in both Ufuk Yatirim 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 Ufuk Yatirim and Turkish Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ufuk Yatirim Yonetim and Turkish Airlines, you can compare the effects of market volatilities on Ufuk Yatirim 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 Ufuk Yatirim with a short position of Turkish Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ufuk Yatirim and Turkish Airlines.
Diversification Opportunities for Ufuk Yatirim and Turkish Airlines
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ufuk and Turkish is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ufuk Yatirim Yonetim and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines and Ufuk Yatirim 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 Ufuk Yatirim Yonetim 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 Ufuk Yatirim i.e., Ufuk Yatirim and Turkish Airlines go up and down completely randomly.
Pair Corralation between Ufuk Yatirim and Turkish Airlines
Assuming the 90 days trading horizon Ufuk Yatirim Yonetim is expected to under-perform the Turkish Airlines. In addition to that, Ufuk Yatirim is 1.34 times more volatile than Turkish Airlines. It trades about -0.06 of its total potential returns per unit of risk. Turkish Airlines is currently generating about 0.11 per unit of volatility. If you would invest 27,250 in Turkish Airlines on September 1, 2024 and sell it today you would earn a total of 1,250 from holding Turkish Airlines or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ufuk Yatirim Yonetim vs. Turkish Airlines
Performance |
| Timeline |
| Ufuk Yatirim Yonetim |
| Turkish Airlines |
Ufuk Yatirim and Turkish Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ufuk Yatirim and Turkish Airlines
The main advantage of trading using opposite Ufuk Yatirim and Turkish Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ufuk Yatirim 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.| Ufuk Yatirim vs. Turkish Airlines | Ufuk Yatirim vs. Datagate Bilgisayar Malzemeleri | Ufuk Yatirim vs. Borlease Otomotiv AS | Ufuk Yatirim vs. Koza Anadolu Metal |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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