Correlation Between Aselsan Elektronik and Turkcell Iletisim
Can any of the company-specific risk be diversified away by investing in both Aselsan Elektronik and Turkcell Iletisim 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 Aselsan Elektronik and Turkcell Iletisim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aselsan Elektronik Sanayi and Turkcell Iletisim Hizmetleri, you can compare the effects of market volatilities on Aselsan Elektronik and Turkcell Iletisim 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 Aselsan Elektronik with a short position of Turkcell Iletisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aselsan Elektronik and Turkcell Iletisim.
Diversification Opportunities for Aselsan Elektronik and Turkcell Iletisim
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aselsan and Turkcell is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aselsan Elektronik Sanayi and Turkcell Iletisim Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkcell Iletisim and Aselsan Elektronik 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 Aselsan Elektronik Sanayi are associated (or correlated) with Turkcell Iletisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkcell Iletisim has no effect on the direction of Aselsan Elektronik i.e., Aselsan Elektronik and Turkcell Iletisim go up and down completely randomly.
Pair Corralation between Aselsan Elektronik and Turkcell Iletisim
Assuming the 90 days trading horizon Aselsan Elektronik Sanayi is expected to generate 0.9 times more return on investment than Turkcell Iletisim. However, Aselsan Elektronik Sanayi is 1.11 times less risky than Turkcell Iletisim. It trades about 0.47 of its potential returns per unit of risk. Turkcell Iletisim Hizmetleri is currently generating about 0.41 per unit of risk. If you would invest 7,400 in Aselsan Elektronik Sanayi on October 26, 2024 and sell it today you would earn a total of 1,005 from holding Aselsan Elektronik Sanayi or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aselsan Elektronik Sanayi vs. Turkcell Iletisim Hizmetleri
Performance |
| Timeline |
| Aselsan Elektronik Sanayi |
| Turkcell Iletisim |
Aselsan Elektronik and Turkcell Iletisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aselsan Elektronik and Turkcell Iletisim
The main advantage of trading using opposite Aselsan Elektronik and Turkcell Iletisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aselsan Elektronik position performs unexpectedly, Turkcell Iletisim 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 Turkcell Iletisim will offset losses from the drop in Turkcell Iletisim's long position.| Aselsan Elektronik vs. Turkish Airlines | Aselsan Elektronik vs. Turkiye Petrol Rafinerileri | Aselsan Elektronik vs. Petkim Petrokimya Holding | Aselsan Elektronik vs. Eregli Demir ve |
| Turkcell Iletisim vs. Turk Telekomunikasyon AS | Turkcell Iletisim vs. Aselsan Elektronik Sanayi | Turkcell Iletisim vs. Koc Holding AS | Turkcell Iletisim vs. Turkiye Petrol Rafinerileri |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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