Correlation Between TAV Havalimanlari and Celebi Hava

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

By analyzing existing cross correlation between TAV Havalimanlari Holding and Celebi Hava Servisi, you can compare the effects of market volatilities on TAV Havalimanlari and Celebi Hava 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 TAV Havalimanlari with a short position of Celebi Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAV Havalimanlari and Celebi Hava.

Diversification Opportunities for TAV Havalimanlari and Celebi Hava

0.69

Correlation Coefficient

TAV Havalimanlari  Celebi Hava

Poor diversification

The 3 months correlation between TAV and Celebi is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding TAV Havalimanlari Holding and Celebi Hava Servisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celebi Hava Servisi and TAV Havalimanlari 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 TAV Havalimanlari Holding are associated (or correlated) with Celebi Hava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celebi Hava Servisi has no effect on the direction of TAV Havalimanlari i.e., TAV Havalimanlari and Celebi Hava go up and down completely randomly.

Pair Corralation between TAV Havalimanlari and Celebi Hava

Assuming the 90 days trading horizon TAV Havalimanlari Holding is expected to generate 1.05 times more return on investment than Celebi Hava. However, TAV Havalimanlari is 1.05 times more volatile than Celebi Hava Servisi. It trades about -0.02 of its potential returns per unit of risk. Celebi Hava Servisi is currently generating about -0.32 per unit of risk. If you would invest  27,875  in TAV Havalimanlari Holding on October 5, 2024 and sell it today you would lose (225.00) from holding TAV Havalimanlari Holding or give up 0.81% of portfolio value over 90 days.

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

TAV Havalimanlari Holding  vs.  Celebi Hava Servisi

TAV Havalimanlari Holding

Risk-Adjusted Performance

12 of 100

OK

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

Celebi Hava Servisi

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Celebi Hava Servisi are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Celebi Hava may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with TAV Havalimanlari and Celebi Hava

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

The idea behind TAV Havalimanlari Holding and Celebi Hava Servisi 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.