Correlation Between BIM Birlesik and Turk Telekomunikasyon
Can any of the company-specific risk be diversified away by investing in both BIM Birlesik 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 BIM Birlesik and Turk Telekomunikasyon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIM Birlesik Magazalar and Turk Telekomunikasyon AS, you can compare the effects of market volatilities on BIM Birlesik 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 BIM Birlesik with a short position of Turk Telekomunikasyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIM Birlesik and Turk Telekomunikasyon.
Diversification Opportunities for BIM Birlesik and Turk Telekomunikasyon
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BIM and Turk is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding BIM Birlesik Magazalar and Turk Telekomunikasyon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Telekomunikasyon and BIM Birlesik 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 BIM Birlesik Magazalar 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 BIM Birlesik i.e., BIM Birlesik and Turk Telekomunikasyon go up and down completely randomly.
Pair Corralation between BIM Birlesik and Turk Telekomunikasyon
Assuming the 90 days trading horizon BIM Birlesik is expected to generate 1.27 times less return on investment than Turk Telekomunikasyon. But when comparing it to its historical volatility, BIM Birlesik Magazalar is 1.11 times less risky than Turk Telekomunikasyon. It trades about 0.09 of its potential returns per unit of risk. Turk Telekomunikasyon AS is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,560 in Turk Telekomunikasyon AS on September 4, 2024 and sell it today you would earn a total of 2,004 from holding Turk Telekomunikasyon AS or generate 78.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIM Birlesik Magazalar vs. Turk Telekomunikasyon AS
Performance |
| Timeline |
| BIM Birlesik Magazalar |
| Turk Telekomunikasyon |
BIM Birlesik and Turk Telekomunikasyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIM Birlesik and Turk Telekomunikasyon
The main advantage of trading using opposite BIM Birlesik and Turk Telekomunikasyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIM Birlesik 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.| BIM Birlesik vs. Eregli Demir ve | BIM Birlesik vs. Turkiye Petrol Rafinerileri | BIM Birlesik vs. Turkiye Sise ve | BIM Birlesik vs. Ford Otomotiv Sanayi |
| Turk Telekomunikasyon vs. Turkcell Iletisim Hizmetleri | Turk Telekomunikasyon vs. Haci Omer Sabanci | Turk Telekomunikasyon vs. Arcelik AS | Turk Telekomunikasyon vs. Petkim Petrokimya Holding |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |