Correlation Between Turkish Airlines and Kristal Kola

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

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

Diversification Opportunities for Turkish Airlines and Kristal Kola

0.1

Correlation Coefficient

Turkish Airlines  Kristal Kola

Average diversification

The 3 months correlation between Turkish and Kristal is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Kristal Kola ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kristal Kola ve 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 Kristal Kola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kristal Kola ve has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Kristal Kola go up and down completely randomly.

Pair Corralation between Turkish Airlines and Kristal Kola

Assuming the 90 days trading horizon Turkish Airlines is expected to generate 0.67 times more return on investment than Kristal Kola. However, Turkish Airlines is 1.49 times less risky than Kristal Kola. It trades about 0.06 of its potential returns per unit of risk. Kristal Kola ve is currently generating about 0.0 per unit of risk. If you would invest  15,290  in Turkish Airlines on October 11, 2024 and sell it today you would earn a total of  14,010  from holding Turkish Airlines or generate 91.63% return on investment over 90 days.

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

Turkish Airlines  vs.  Kristal Kola ve

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.

Kristal Kola ve

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kristal Kola ve are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Kristal Kola 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 Kristal Kola

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

The idea behind Turkish Airlines and Kristal Kola 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.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.