Correlation Between Turkish Airlines and Korfez Gayrimenkul

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

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

Diversification Opportunities for Turkish Airlines and Korfez Gayrimenkul

0.76

Correlation Coefficient

Turkish Airlines  Korfez Gayrimenkul

Poor diversification

The 3 months correlation between Turkish and Korfez is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Korfez Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korfez Gayrimenkul 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 Korfez Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korfez Gayrimenkul has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Korfez Gayrimenkul go up and down completely randomly.

Pair Corralation between Turkish Airlines and Korfez Gayrimenkul

Assuming the 90 days trading horizon Turkish Airlines is expected to generate 0.51 times more return on investment than Korfez Gayrimenkul. However, Turkish Airlines is 1.97 times less risky than Korfez Gayrimenkul. It trades about -0.04 of its potential returns per unit of risk. Korfez Gayrimenkul Yatirim is currently generating about -0.43 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	Significant
Accuracy	100.0%
Values	Daily Returns

Turkish Airlines  vs.  Korfez Gayrimenkul Yatirim

Turkish Airlines

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Turkish Airlines are ranked lower than 7 (%) 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.

Korfez Gayrimenkul

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Korfez Gayrimenkul Yatirim are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Korfez Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Turkish Airlines and Korfez Gayrimenkul

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

The idea behind Turkish Airlines and Korfez Gayrimenkul Yatirim 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.