Correlation Between APT Satellite and Turk Telekomunikasyon
Can any of the company-specific risk be diversified away by investing in both APT Satellite and Turk 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 APT Satellite and Turk Telekomunikasyon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APT Satellite Holdings and Turk Telekomunikasyon AS, you can compare the effects of market volatilities on APT Satellite and Turk 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 APT Satellite with a short position of Turk Telekomunikasyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Satellite and Turk Telekomunikasyon.
Diversification Opportunities for APT Satellite and Turk Telekomunikasyon
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between APT and Turk is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding APT Satellite Holdings and Turk Telekomunikasyon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Telekomunikasyon and APT Satellite 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 APT Satellite Holdings are associated (or correlated) with Turk Telekomunikasyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Telekomunikasyon has no effect on the direction of APT Satellite i.e., APT Satellite and Turk Telekomunikasyon go up and down completely randomly.
Pair Corralation between APT Satellite and Turk Telekomunikasyon
If you would invest 28.00 in APT Satellite Holdings on August 29, 2024 and sell it today you would earn a total of 0.00 from holding APT Satellite Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
APT Satellite Holdings vs. Turk Telekomunikasyon AS
Performance |
| Timeline |
| APT Satellite Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Turk Telekomunikasyon |
APT Satellite and Turk Telekomunikasyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Satellite and Turk Telekomunikasyon
The main advantage of trading using opposite APT Satellite and Turk Telekomunikasyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Satellite position performs unexpectedly, Turk 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 Turk Telekomunikasyon will offset losses from the drop in Turk Telekomunikasyon's long position.| APT Satellite vs. Verizon Communications | APT Satellite vs. T Mobile | APT Satellite vs. Lumen Technologies | APT Satellite vs. Comcast Corp |
| Turk Telekomunikasyon vs. Turkiye Garanti Bankasi | Turk Telekomunikasyon vs. Akbank Turk Anonim | Turk Telekomunikasyon vs. Koc Holdings AS | Turk Telekomunikasyon vs. Anadolu Efes Biracilik |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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