Correlation Between Yapi Ve and Turkish Airlines
Can any of the company-specific risk be diversified away by investing in both Yapi Ve 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 Yapi Ve and Turkish Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yapi ve Kredi and Turkish Airlines, you can compare the effects of market volatilities on Yapi Ve 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 Yapi Ve with a short position of Turkish Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yapi Ve and Turkish Airlines.
Diversification Opportunities for Yapi Ve and Turkish Airlines
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yapi and Turkish is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines and Yapi Ve 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 Yapi ve Kredi 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 Yapi Ve i.e., Yapi Ve and Turkish Airlines go up and down completely randomly.
Pair Corralation between Yapi Ve and Turkish Airlines
Assuming the 90 days trading horizon Yapi ve Kredi is expected to generate 1.4 times more return on investment than Turkish Airlines. However, Yapi Ve is 1.4 times more volatile than Turkish Airlines. It trades about 0.29 of its potential returns per unit of risk. Turkish Airlines is currently generating about 0.16 per unit of risk. If you would invest 2,476 in Yapi ve Kredi on August 28, 2024 and sell it today you would earn a total of 456.00 from holding Yapi ve Kredi or generate 18.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yapi ve Kredi vs. Turkish Airlines
Performance |
| Timeline |
| Yapi ve Kredi |
| Turkish Airlines |
Yapi Ve and Turkish Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yapi Ve and Turkish Airlines
The main advantage of trading using opposite Yapi Ve and Turkish Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yapi Ve 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.| Yapi Ve vs. Silverline Endustri ve | Yapi Ve vs. Galatasaray Sportif Sinai | Yapi Ve vs. Bms Birlesik Metal | Yapi Ve vs. Cuhadaroglu Metal Sanayi |
| Turkish Airlines vs. QNB Finans Finansal | Turkish Airlines vs. Pamel Yenilenebilir Elektrik | Turkish Airlines vs. Brisa Bridgestone Sabanci | Turkish Airlines vs. Dogus Gayrimenkul Yatirim |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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