Correlation Between Cemtas Celik and Turkish Airlines

Can any of the company-specific risk be diversified away by investing in both Cemtas Celik 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 Cemtas Celik and Turkish Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cemtas Celik Makina and Turkish Airlines, you can compare the effects of market volatilities on Cemtas Celik 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 Cemtas Celik with a short position of Turkish Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemtas Celik and Turkish Airlines.

Diversification Opportunities for Cemtas Celik and Turkish Airlines

0.8

Correlation Coefficient

Cemtas Celik  Turkish Airlines

Very poor diversification

The 3 months correlation between Cemtas and Turkish is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cemtas Celik Makina and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines and Cemtas Celik 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 Cemtas Celik Makina 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 Cemtas Celik i.e., Cemtas Celik and Turkish Airlines go up and down completely randomly.

Pair Corralation between Cemtas Celik and Turkish Airlines

Assuming the 90 days trading horizon Cemtas Celik Makina is expected to generate 1.02 times more return on investment than Turkish Airlines. However, Cemtas Celik is 1.02 times more volatile than Turkish Airlines. It trades about 0.13 of its potential returns per unit of risk. Turkish Airlines is currently generating about -0.01 per unit of risk. If you would invest  902.00  in Cemtas Celik Makina on October 5, 2024 and sell it today you would earn a total of  33.00  from holding Cemtas Celik Makina or generate 3.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Cemtas Celik Makina  vs.  Turkish Airlines

Cemtas Celik Makina

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cemtas Celik Makina are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Cemtas Celik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Turkish Airlines

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Turkish Airlines are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turkish Airlines may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Cemtas Celik and Turkish Airlines

The main advantage of trading using opposite Cemtas Celik and Turkish Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemtas Celik 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.

The idea behind Cemtas Celik Makina and Turkish Airlines pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.