Correlation Between Turkish Airlines and Turk Tuborg

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

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

Diversification Opportunities for Turkish Airlines and Turk Tuborg

0.0

Correlation Coefficient

Turkish Airlines  Turk Tuborg

Pay attention - limited upside

The 3 months correlation between Turkish and Turk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Turk Tuborg Bira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Tuborg Bira 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 Turk Tuborg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Tuborg Bira has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Turk Tuborg go up and down completely randomly.

Pair Corralation between Turkish Airlines and Turk Tuborg

If you would invest  29,025  in Turkish Airlines on October 9, 2024 and sell it today you would earn a total of  675.00  from holding Turkish Airlines or generate 2.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	2.38%
Values	Daily Returns

Turkish Airlines  vs.  Turk Tuborg Bira

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.

Turk Tuborg Bira

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Turk Tuborg Bira has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Turk Tuborg is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Turkish Airlines and Turk Tuborg

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

The idea behind Turkish Airlines and Turk Tuborg Bira 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.