Correlation Between Nigbas Nigde and Turkish Airlines

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

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

Diversification Opportunities for Nigbas Nigde and Turkish Airlines

-0.24

Correlation Coefficient

Nigbas Nigde  Turkish Airlines

Very good diversification

The 3 months correlation between Nigbas and Turkish is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nigbas Nigde Beton and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines and Nigbas Nigde 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 Nigbas Nigde Beton 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 Nigbas Nigde i.e., Nigbas Nigde and Turkish Airlines go up and down completely randomly.

Pair Corralation between Nigbas Nigde and Turkish Airlines

Assuming the 90 days trading horizon Nigbas Nigde Beton is expected to under-perform the Turkish Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Nigbas Nigde Beton is 1.17 times less risky than Turkish Airlines. The stock trades about -0.27 of its potential returns per unit of risk. The Turkish Airlines is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  28,600  in Turkish Airlines on October 24, 2024 and sell it today you would earn a total of  1,525  from holding Turkish Airlines or generate 5.33% return on investment over 90 days.

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

Nigbas Nigde Beton  vs.  Turkish Airlines

Nigbas Nigde Beton

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nigbas Nigde Beton has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Turkish Airlines

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Turkish Airlines are ranked lower than 8 (%) 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 Nigbas Nigde and Turkish Airlines

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

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.