Correlation Between Turkish Airlines and Euro Kapital
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Euro Kapital 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 Euro Kapital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Euro Kapital Yatirim, you can compare the effects of market volatilities on Turkish Airlines and Euro Kapital 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 Euro Kapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Euro Kapital.
Diversification Opportunities for Turkish Airlines and Euro Kapital
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkish and Euro is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Euro Kapital Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Kapital Yatirim 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 Euro Kapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Kapital Yatirim has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Euro Kapital go up and down completely randomly.
Pair Corralation between Turkish Airlines and Euro Kapital
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 0.4 times more return on investment than Euro Kapital. However, Turkish Airlines is 2.5 times less risky than Euro Kapital. It trades about -0.04 of its potential returns per unit of risk. Euro Kapital Yatirim is currently generating about -0.04 per unit of risk. If you would invest 29,925 in Turkish Airlines on October 11, 2024 and sell it today you would lose (450.00) from holding Turkish Airlines or give up 1.5% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Turkish Airlines vs. Euro Kapital Yatirim
Performance |
Timeline |
Turkish Airlines |
Euro Kapital Yatirim |
Turkish Airlines and Euro Kapital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turkish Airlines and Euro Kapital
The main advantage of trading using opposite Turkish Airlines and Euro Kapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Euro Kapital 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 Euro Kapital will offset losses from the drop in Euro Kapital's long position.Turkish Airlines vs. Aselsan Elektronik Sanayi | Turkish Airlines vs. Turkiye Petrol Rafinerileri | Turkish Airlines vs. Pegasus Hava Tasimaciligi | Turkish Airlines vs. Turkiye Sise ve |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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