Correlation Between Cytokinetics and Turk Hava

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Can any of the company-specific risk be diversified away by investing in both Cytokinetics and Turk Hava 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 Cytokinetics and Turk Hava into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cytokinetics and Turk Hava Yollari, you can compare the effects of market volatilities on Cytokinetics and Turk Hava 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 Cytokinetics with a short position of Turk Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytokinetics and Turk Hava.

Diversification Opportunities for Cytokinetics and Turk Hava

-0.89
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Cytokinetics and TKHVY is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Cytokinetics and Turk Hava Yollari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Hava Yollari and Cytokinetics 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 Cytokinetics are associated (or correlated) with Turk Hava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Hava Yollari has no effect on the direction of Cytokinetics i.e., Cytokinetics and Turk Hava go up and down completely randomly.

Pair Corralation between Cytokinetics and Turk Hava

Given the investment horizon of 90 days Cytokinetics is expected to generate 1.52 times less return on investment than Turk Hava. In addition to that, Cytokinetics is 1.12 times more volatile than Turk Hava Yollari. It trades about 0.05 of its total potential returns per unit of risk. Turk Hava Yollari is currently generating about 0.09 per unit of volatility. If you would invest  1,778  in Turk Hava Yollari on September 7, 2022 and sell it today you would earn a total of  4,672  from holding Turk Hava Yollari or generate 262.77% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy99.79%
ValuesDaily Returns

Cytokinetics  vs.  Turk Hava Yollari

 Performance (%) 
       Timeline  
Cytokinetics 
Cytokinetics Performance
0 of 100
Over the last 90 days Cytokinetics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2023. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Cytokinetics Price Channel

Turk Hava Yollari 
TKHVY Performance
15 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Turk Hava Yollari are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Turk Hava showed solid returns over the last few months and may actually be approaching a breakup point.

TKHVY Price Channel

Cytokinetics and Turk Hava Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cytokinetics and Turk Hava

The main advantage of trading using opposite Cytokinetics and Turk Hava positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytokinetics position performs unexpectedly, Turk Hava 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 Hava will offset losses from the drop in Turk Hava's long position.
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The idea behind Cytokinetics and Turk Hava Yollari 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.
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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