Correlation Between Turkish Airlines and Flap Kongre

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

By analyzing existing cross correlation between Turkish Airlines and Flap Kongre Toplanti, you can compare the effects of market volatilities on Turkish Airlines and Flap Kongre 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 Flap Kongre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Flap Kongre.

Diversification Opportunities for Turkish Airlines and Flap Kongre

-0.25

Correlation Coefficient

Turkish Airlines  Flap Kongre

Very good diversification

The 3 months correlation between Turkish and Flap is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Flap Kongre Toplanti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flap Kongre Toplanti 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 Flap Kongre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flap Kongre Toplanti has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Flap Kongre go up and down completely randomly.

Pair Corralation between Turkish Airlines and Flap Kongre

Assuming the 90 days trading horizon Turkish Airlines is expected to generate 0.59 times more return on investment than Flap Kongre. However, Turkish Airlines is 1.69 times less risky than Flap Kongre. It trades about 0.07 of its potential returns per unit of risk. Flap Kongre Toplanti is currently generating about 0.01 per unit of risk. If you would invest  13,460  in Turkish Airlines on October 24, 2024 and sell it today you would earn a total of  16,665  from holding Turkish Airlines or generate 123.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Turkish Airlines  vs.  Flap Kongre Toplanti

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.

Flap Kongre Toplanti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flap Kongre Toplanti has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Turkish Airlines and Flap Kongre

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

The idea behind Turkish Airlines and Flap Kongre Toplanti 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.