Correlation Between ENKA Insaat and Turkcell Iletisim
Can any of the company-specific risk be diversified away by investing in both ENKA Insaat 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 ENKA Insaat and Turkcell Iletisim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENKA Insaat ve and Turkcell Iletisim Hizmetleri, you can compare the effects of market volatilities on ENKA Insaat 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 ENKA Insaat with a short position of Turkcell Iletisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Turkcell Iletisim.
Diversification Opportunities for ENKA Insaat and Turkcell Iletisim
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ENKA and Turkcell is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Turkcell Iletisim Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkcell Iletisim and ENKA Insaat 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 ENKA Insaat ve 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 ENKA Insaat i.e., ENKA Insaat and Turkcell Iletisim go up and down completely randomly.
Pair Corralation between ENKA Insaat and Turkcell Iletisim
Assuming the 90 days trading horizon ENKA Insaat is expected to generate 1.11 times less return on investment than Turkcell Iletisim. In addition to that, ENKA Insaat is 1.02 times more volatile than Turkcell Iletisim Hizmetleri. It trades about 0.08 of its total potential returns per unit of risk. Turkcell Iletisim Hizmetleri is currently generating about 0.09 per unit of volatility. If you would invest 3,352 in Turkcell Iletisim Hizmetleri on September 4, 2024 and sell it today you would earn a total of 5,833 from holding Turkcell Iletisim Hizmetleri or generate 174.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
ENKA Insaat ve vs. Turkcell Iletisim Hizmetleri
Performance |
| Timeline |
| ENKA Insaat ve |
| Turkcell Iletisim |
ENKA Insaat and Turkcell Iletisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENKA Insaat and Turkcell Iletisim
The main advantage of trading using opposite ENKA Insaat and Turkcell Iletisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat 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.| ENKA Insaat vs. Turkiye Sise ve | ENKA Insaat vs. Eregli Demir ve | ENKA Insaat vs. Koc Holding AS | ENKA Insaat vs. Haci Omer Sabanci |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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