Correlation Between Snap and Tekfen Holding
Can any of the company-specific risk be diversified away by investing in both Snap 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 Snap and Tekfen Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Tekfen Holding AS, you can compare the effects of market volatilities on Snap 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 Snap with a short position of Tekfen Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Tekfen Holding.
Diversification Opportunities for Snap and Tekfen Holding
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Snap and Tekfen is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc 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 Snap 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 Snap Inc 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 Snap i.e., Snap and Tekfen Holding go up and down completely randomly.
Pair Corralation between Snap and Tekfen Holding
Given the investment horizon of 90 days Snap is expected to generate 6.06 times less return on investment than Tekfen Holding. In addition to that, Snap is 1.21 times more volatile than Tekfen Holding AS. It trades about 0.02 of its total potential returns per unit of risk. Tekfen Holding AS is currently generating about 0.11 per unit of volatility. If you would invest 2,734 in Tekfen Holding AS on January 17, 2025 and sell it today you would earn a total of 10,526 from holding Tekfen Holding AS or generate 385.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Snap Inc vs. Tekfen Holding AS
Performance |
| Timeline |
| Snap Inc |
| Tekfen Holding AS |
Snap and Tekfen Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Tekfen Holding
The main advantage of trading using opposite Snap and Tekfen Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap 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.The idea behind Snap Inc and Tekfen Holding AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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