Correlation Between Pegasus Hava and Burcelik Vana

Can any of the company-specific risk be diversified away by investing in both Pegasus Hava and Burcelik Vana 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 Pegasus Hava and Burcelik Vana into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pegasus Hava Tasimaciligi and Burcelik Vana Sanayi, you can compare the effects of market volatilities on Pegasus Hava and Burcelik Vana 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 Pegasus Hava with a short position of Burcelik Vana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hava and Burcelik Vana.

Diversification Opportunities for Pegasus Hava and Burcelik Vana

-0.14

Correlation Coefficient

Pegasus Hava  Burcelik Vana

Good diversification

The 3 months correlation between Pegasus and Burcelik is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hava Tasimaciligi and Burcelik Vana Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burcelik Vana Sanayi and Pegasus Hava 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 Pegasus Hava Tasimaciligi are associated (or correlated) with Burcelik Vana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burcelik Vana Sanayi has no effect on the direction of Pegasus Hava i.e., Pegasus Hava and Burcelik Vana go up and down completely randomly.

Pair Corralation between Pegasus Hava and Burcelik Vana

Assuming the 90 days trading horizon Pegasus Hava Tasimaciligi is expected to generate 0.92 times more return on investment than Burcelik Vana. However, Pegasus Hava Tasimaciligi is 1.09 times less risky than Burcelik Vana. It trades about 0.11 of its potential returns per unit of risk. Burcelik Vana Sanayi is currently generating about -0.05 per unit of risk. If you would invest  21,870  in Pegasus Hava Tasimaciligi on December 25, 2024 and sell it today you would earn a total of  3,980  from holding Pegasus Hava Tasimaciligi or generate 18.2% return on investment over 90 days.

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

Pegasus Hava Tasimaciligi  vs.  Burcelik Vana Sanayi

Pegasus Hava Tasimaciligi

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pegasus Hava Tasimaciligi are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Pegasus Hava demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Burcelik Vana Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Burcelik Vana Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Pegasus Hava and Burcelik Vana

The main advantage of trading using opposite Pegasus Hava and Burcelik Vana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hava position performs unexpectedly, Burcelik Vana 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 Burcelik Vana will offset losses from the drop in Burcelik Vana's long position.

The idea behind Pegasus Hava Tasimaciligi and Burcelik Vana Sanayi 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.