Correlation Between Petrokent Turizm and Turkish Airlines
Can any of the company-specific risk be diversified away by investing in both Petrokent Turizm and Turkish Airlines 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 Petrokent Turizm and Turkish Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrokent Turizm AS and Turkish Airlines, you can compare the effects of market volatilities on Petrokent Turizm and Turkish Airlines 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 Petrokent Turizm with a short position of Turkish Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrokent Turizm and Turkish Airlines.
Diversification Opportunities for Petrokent Turizm and Turkish Airlines
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Petrokent and Turkish is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Petrokent Turizm AS and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines and Petrokent Turizm 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 Petrokent Turizm AS are associated (or correlated) with Turkish Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkish Airlines has no effect on the direction of Petrokent Turizm i.e., Petrokent Turizm and Turkish Airlines go up and down completely randomly.
Pair Corralation between Petrokent Turizm and Turkish Airlines
Assuming the 90 days trading horizon Petrokent Turizm AS is expected to under-perform the Turkish Airlines. In addition to that, Petrokent Turizm is 2.74 times more volatile than Turkish Airlines. It trades about -0.04 of its total potential returns per unit of risk. Turkish Airlines is currently generating about 0.16 per unit of volatility. If you would invest 29,850 in Turkish Airlines on February 15, 2024 and sell it today you would earn a total of 1,175 from holding Turkish Airlines or generate 3.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Petrokent Turizm AS vs. Turkish Airlines
Performance |
Timeline |
Petrokent Turizm |
Turkish Airlines |
Petrokent Turizm and Turkish Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Petrokent Turizm and Turkish Airlines
The main advantage of trading using opposite Petrokent Turizm and Turkish Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrokent Turizm position performs unexpectedly, Turkish Airlines 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 Turkish Airlines will offset losses from the drop in Turkish Airlines' long position.Petrokent Turizm vs. Qnb Finansbank AS | Petrokent Turizm vs. Kent Gida Maddeleri | Petrokent Turizm vs. QNB Finans Finansal | Petrokent Turizm vs. Turkiye Kalkinma Bankasi |
Turkish Airlines vs. Eregli Demir ve | Turkish Airlines vs. Turkiye Petrol Rafinerileri | Turkish Airlines vs. Ford 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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