Correlation Between Turkish Airlines and Yapi Ve
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Yapi Ve 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 Yapi Ve into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Yapi ve Kredi, you can compare the effects of market volatilities on Turkish Airlines and Yapi Ve 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 Yapi Ve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Yapi Ve.
Diversification Opportunities for Turkish Airlines and Yapi Ve
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Turkish and Yapi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Yapi ve Kredi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yapi ve Kredi 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 Yapi Ve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yapi ve Kredi has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Yapi Ve go up and down completely randomly.
Pair Corralation between Turkish Airlines and Yapi Ve
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 1.1 times less return on investment than Yapi Ve. But when comparing it to its historical volatility, Turkish Airlines is 1.09 times less risky than Yapi Ve. It trades about 0.11 of its potential returns per unit of risk. Yapi ve Kredi is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 855.00 in Yapi ve Kredi on February 11, 2024 and sell it today you would earn a total of 2,247 from holding Yapi ve Kredi or generate 262.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Turkish Airlines vs. Yapi ve Kredi
Performance |
Timeline |
Turkish Airlines |
Yapi ve Kredi |
Turkish Airlines and Yapi Ve Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turkish Airlines and Yapi Ve
The main advantage of trading using opposite Turkish Airlines and Yapi Ve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Yapi Ve 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 Yapi Ve will offset losses from the drop in Yapi Ve's long position.Turkish Airlines vs. Birlik Mensucat Ticaret | Turkish Airlines vs. Pamel Yenilenebilir Elektrik | Turkish Airlines vs. Kustur Kusadasi Turizm | Turkish Airlines vs. Platform Turizm Tasimacilik |
Yapi Ve vs. Katmerciler Arac Ustu | Yapi Ve vs. Yesil Gayrimenkul Yatirim | Yapi Ve vs. Zorlu Enerji Elektrik | Yapi Ve vs. Karsan Otomotiv Sanayi |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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