Correlation Between Turkish Airlines and Netas Telekomunikasyon
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Netas Telekomunikasyon 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 Netas Telekomunikasyon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Netas Telekomunikasyon AS, you can compare the effects of market volatilities on Turkish Airlines and Netas Telekomunikasyon 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 Netas Telekomunikasyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Netas Telekomunikasyon.
Diversification Opportunities for Turkish Airlines and Netas Telekomunikasyon
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkish and Netas is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Netas Telekomunikasyon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netas Telekomunikasyon 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 Netas Telekomunikasyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netas Telekomunikasyon has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Netas Telekomunikasyon go up and down completely randomly.
Pair Corralation between Turkish Airlines and Netas Telekomunikasyon
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 1.52 times less return on investment than Netas Telekomunikasyon. But when comparing it to its historical volatility, Turkish Airlines is 1.66 times less risky than Netas Telekomunikasyon. It trades about 0.08 of its potential returns per unit of risk. Netas Telekomunikasyon AS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,740 in Netas Telekomunikasyon AS on October 10, 2024 and sell it today you would earn a total of 4,260 from holding Netas Telekomunikasyon AS or generate 155.47% 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. Netas Telekomunikasyon AS
Performance |
Timeline |
Turkish Airlines |
Netas Telekomunikasyon |
Turkish Airlines and Netas Telekomunikasyon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turkish Airlines and Netas Telekomunikasyon
The main advantage of trading using opposite Turkish Airlines and Netas Telekomunikasyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Netas Telekomunikasyon 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 Netas Telekomunikasyon will offset losses from the drop in Netas Telekomunikasyon'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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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