Correlation Between TAV Havalimanlari and Ege Endustri

Can any of the company-specific risk be diversified away by investing in both TAV Havalimanlari and Ege Endustri 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 Ege Endustri 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 Ege Endustri ve, you can compare the effects of market volatilities on TAV Havalimanlari and Ege Endustri 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 Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAV Havalimanlari and Ege Endustri.

Diversification Opportunities for TAV Havalimanlari and Ege Endustri

0.75

Correlation Coefficient

TAV Havalimanlari  Ege Endustri

Poor diversification

The 3 months correlation between TAV and Ege is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding TAV Havalimanlari Holding and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri ve 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 Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of TAV Havalimanlari i.e., TAV Havalimanlari and Ege Endustri go up and down completely randomly.

Pair Corralation between TAV Havalimanlari and Ege Endustri

Assuming the 90 days trading horizon TAV Havalimanlari Holding is expected to generate 0.97 times more return on investment than Ege Endustri. However, TAV Havalimanlari Holding is 1.03 times less risky than Ege Endustri. It trades about -0.09 of its potential returns per unit of risk. Ege Endustri ve is currently generating about -0.16 per unit of risk. If you would invest  27,875  in TAV Havalimanlari Holding on December 4, 2024 and sell it today you would lose (2,825) from holding TAV Havalimanlari Holding or give up 10.13% 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.  Ege Endustri ve

TAV Havalimanlari Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days TAV Havalimanlari Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain 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.

Ege Endustri ve

Risk-Adjusted Performance

Very Weak

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

Pair Trading with TAV Havalimanlari and Ege Endustri

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

The idea behind TAV Havalimanlari Holding and Ege Endustri ve 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.