Correlation Between Turkish Airlines and Besiktas Futbol

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

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

Diversification Opportunities for Turkish Airlines and Besiktas Futbol

-0.03

Correlation Coefficient

Turkish Airlines  Besiktas Futbol

Good diversification

The 3 months correlation between Turkish and Besiktas is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Besiktas Futbol Yatirimlari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Besiktas Futbol Yati and Turkish Airlines 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 Turkish Airlines are associated (or correlated) with Besiktas Futbol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Besiktas Futbol Yati has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Besiktas Futbol go up and down completely randomly.

Pair Corralation between Turkish Airlines and Besiktas Futbol

Assuming the 90 days trading horizon Turkish Airlines is expected to generate 2.14 times less return on investment than Besiktas Futbol. But when comparing it to its historical volatility, Turkish Airlines is 2.86 times less risky than Besiktas Futbol. It trades about 0.22 of its potential returns per unit of risk. Besiktas Futbol Yatirimlari is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  430.00  in Besiktas Futbol Yatirimlari on October 22, 2024 and sell it today you would earn a total of  53.00  from holding Besiktas Futbol Yatirimlari or generate 12.33% return on investment over 90 days.

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

Turkish Airlines  vs.  Besiktas Futbol Yatirimlari

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.

Besiktas Futbol Yati

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Besiktas Futbol Yatirimlari has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Besiktas Futbol is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Turkish Airlines and Besiktas Futbol

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

The idea behind Turkish Airlines and Besiktas Futbol Yatirimlari 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.