Correlation Between Birikim Varlik and Turk Telekomunikasyon
Can any of the company-specific risk be diversified away by investing in both Birikim Varlik 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 Birikim Varlik and Turk Telekomunikasyon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Birikim Varlik Yonetim and Turk Telekomunikasyon AS, you can compare the effects of market volatilities on Birikim Varlik 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 Birikim Varlik with a short position of Turk Telekomunikasyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birikim Varlik and Turk Telekomunikasyon.
Diversification Opportunities for Birikim Varlik and Turk Telekomunikasyon
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Birikim and Turk is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Birikim Varlik Yonetim and Turk Telekomunikasyon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Telekomunikasyon and Birikim Varlik 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 Birikim Varlik Yonetim 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 Birikim Varlik i.e., Birikim Varlik and Turk Telekomunikasyon go up and down completely randomly.
Pair Corralation between Birikim Varlik and Turk Telekomunikasyon
Assuming the 90 days trading horizon Birikim Varlik Yonetim is expected to generate 1.61 times more return on investment than Turk Telekomunikasyon. However, Birikim Varlik is 1.61 times more volatile than Turk Telekomunikasyon AS. It trades about 0.07 of its potential returns per unit of risk. Turk Telekomunikasyon AS is currently generating about 0.07 per unit of risk. If you would invest 1,523 in Birikim Varlik Yonetim on September 2, 2024 and sell it today you would earn a total of 3,552 from holding Birikim Varlik Yonetim or generate 233.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.59% |
| Values | Daily Returns |
Birikim Varlik Yonetim vs. Turk Telekomunikasyon AS
Performance |
| Timeline |
| Birikim Varlik Yonetim |
| Turk Telekomunikasyon |
Birikim Varlik and Turk Telekomunikasyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Birikim Varlik and Turk Telekomunikasyon
The main advantage of trading using opposite Birikim Varlik and Turk Telekomunikasyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Birikim Varlik 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.| Birikim Varlik vs. Verusa Holding AS | Birikim Varlik vs. Guler Yatirim Holding | Birikim Varlik vs. Verusaturk Girisim Sermayesi | Birikim Varlik vs. Yesil Yatirim Holding |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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