Correlation Between Eregli Demir and Turkcell Iletisim
Can any of the company-specific risk be diversified away by investing in both Eregli Demir 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 Eregli Demir and Turkcell Iletisim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eregli Demir ve and Turkcell Iletisim Hizmetleri, you can compare the effects of market volatilities on Eregli Demir 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 Eregli Demir with a short position of Turkcell Iletisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Turkcell Iletisim.
Diversification Opportunities for Eregli Demir and Turkcell Iletisim
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eregli and Turkcell is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir 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 Eregli Demir 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 Eregli Demir 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 Eregli Demir i.e., Eregli Demir and Turkcell Iletisim go up and down completely randomly.
Pair Corralation between Eregli Demir and Turkcell Iletisim
Assuming the 90 days trading horizon Eregli Demir is expected to generate 1.93 times less return on investment than Turkcell Iletisim. But when comparing it to its historical volatility, Eregli Demir ve is 1.07 times less risky than Turkcell Iletisim. It trades about 0.06 of its potential returns per unit of risk. Turkcell Iletisim Hizmetleri is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,651 in Turkcell Iletisim Hizmetleri on August 29, 2024 and sell it today you would earn a total of 3,654 from holding Turkcell Iletisim Hizmetleri or generate 64.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eregli Demir ve vs. Turkcell Iletisim Hizmetleri
Performance |
| Timeline |
| Eregli Demir ve |
| Turkcell Iletisim |
Eregli Demir and Turkcell Iletisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Turkcell Iletisim
The main advantage of trading using opposite Eregli Demir and Turkcell Iletisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir 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.| Eregli Demir vs. Qnb Finansbank AS | Eregli Demir vs. QNB Finans Finansal | Eregli Demir vs. Turkiye Kalkinma Bankasi | Eregli Demir vs. Kocaer Celik Sanayi |
| Turkcell Iletisim vs. Yibitas Yozgat Isci | Turkcell Iletisim vs. Ege Endustri ve | Turkcell Iletisim vs. Borusan Yatirim ve | 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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