Correlation Between Unlu Yatirim and Turkish Airlines
Can any of the company-specific risk be diversified away by investing in both Unlu 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 Unlu 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 Unlu Yatirim Holding and Turkish Airlines, you can compare the effects of market volatilities on Unlu 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 Unlu Yatirim with a short position of Turkish Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unlu Yatirim and Turkish Airlines.
Diversification Opportunities for Unlu Yatirim and Turkish Airlines
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Unlu and Turkish is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Unlu Yatirim Holding and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines and Unlu 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 Unlu Yatirim Holding 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 Unlu Yatirim i.e., Unlu Yatirim and Turkish Airlines go up and down completely randomly.
Pair Corralation between Unlu Yatirim and Turkish Airlines
Assuming the 90 days trading horizon Unlu Yatirim Holding is expected to under-perform the Turkish Airlines. In addition to that, Unlu Yatirim is 1.27 times more volatile than Turkish Airlines. It trades about -0.35 of its total potential returns per unit of risk. Turkish Airlines is currently generating about 0.26 per unit of volatility. If you would invest 29,700 in Turkish Airlines on November 5, 2024 and sell it today you would earn a total of 1,675 from holding Turkish Airlines or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unlu Yatirim Holding vs. Turkish Airlines
Performance |
| Timeline |
| Unlu Yatirim Holding |
| Turkish Airlines |
Unlu Yatirim and Turkish Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unlu Yatirim and Turkish Airlines
The main advantage of trading using opposite Unlu Yatirim and Turkish Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unlu 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.| Unlu Yatirim vs. Gentas Genel Metal | Unlu Yatirim vs. Cuhadaroglu Metal Sanayi | Unlu Yatirim vs. Koza Anadolu Metal | Unlu Yatirim vs. KOC METALURJI |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Directory Find actively traded commodities issued by global exchanges |