Correlation Between Turkiye Sise and Tekfen Holding
Can any of the company-specific risk be diversified away by investing in both Turkiye Sise and Tekfen Holding 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 Turkiye Sise and Tekfen Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Sise ve and Tekfen Holding AS, you can compare the effects of market volatilities on Turkiye Sise and Tekfen Holding 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 Turkiye Sise with a short position of Tekfen Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sise and Tekfen Holding.
Diversification Opportunities for Turkiye Sise and Tekfen Holding
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Turkiye and Tekfen is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve and Tekfen Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekfen Holding AS and Turkiye Sise 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 Turkiye Sise ve are associated (or correlated) with Tekfen Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekfen Holding AS has no effect on the direction of Turkiye Sise i.e., Turkiye Sise and Tekfen Holding go up and down completely randomly.
Pair Corralation between Turkiye Sise and Tekfen Holding
Assuming the 90 days trading horizon Turkiye Sise ve is expected to under-perform the Tekfen Holding. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Sise ve is 1.34 times less risky than Tekfen Holding. The stock trades about -0.27 of its potential returns per unit of risk. The Tekfen Holding AS is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 6,485 in Tekfen Holding AS on November 3, 2024 and sell it today you would lose (110.00) from holding Tekfen Holding AS or give up 1.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Sise ve vs. Tekfen Holding AS
Performance |
| Timeline |
| Turkiye Sise ve |
| Tekfen Holding AS |
Turkiye Sise and Tekfen Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Sise and Tekfen Holding
The main advantage of trading using opposite Turkiye Sise and Tekfen Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sise position performs unexpectedly, Tekfen Holding 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 Tekfen Holding will offset losses from the drop in Tekfen Holding's long position.| Turkiye Sise vs. Eregli Demir ve | Turkiye Sise vs. Turkiye Petrol Rafinerileri | Turkiye Sise vs. Turkish Airlines | Turkiye Sise vs. Ford Otomotiv Sanayi |
| Tekfen Holding vs. Turkiye Sise ve | Tekfen Holding vs. Turkiye Petrol Rafinerileri | Tekfen Holding vs. Petkim Petrokimya Holding | Tekfen Holding vs. TAV Havalimanlari 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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