Correlation Between Turkcell Iletisim and BIM Birlesik
Can any of the company-specific risk be diversified away by investing in both Turkcell Iletisim and BIM Birlesik 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 Turkcell Iletisim and BIM Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkcell Iletisim Hizmetleri and BIM Birlesik Magazalar, you can compare the effects of market volatilities on Turkcell Iletisim and BIM Birlesik 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 Turkcell Iletisim with a short position of BIM Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkcell Iletisim and BIM Birlesik.
Diversification Opportunities for Turkcell Iletisim and BIM Birlesik
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkcell and BIM is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Turkcell Iletisim Hizmetleri and BIM Birlesik Magazalar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIM Birlesik Magazalar and Turkcell Iletisim 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 Turkcell Iletisim Hizmetleri are associated (or correlated) with BIM Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIM Birlesik Magazalar has no effect on the direction of Turkcell Iletisim i.e., Turkcell Iletisim and BIM Birlesik go up and down completely randomly.
Pair Corralation between Turkcell Iletisim and BIM Birlesik
Assuming the 90 days trading horizon Turkcell Iletisim Hizmetleri is expected to generate 0.94 times more return on investment than BIM Birlesik. However, Turkcell Iletisim Hizmetleri is 1.07 times less risky than BIM Birlesik. It trades about 0.1 of its potential returns per unit of risk. BIM Birlesik Magazalar is currently generating about 0.09 per unit of risk. If you would invest 5,691 in Turkcell Iletisim Hizmetleri on September 4, 2024 and sell it today you would earn a total of 3,494 from holding Turkcell Iletisim Hizmetleri or generate 61.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkcell Iletisim Hizmetleri vs. BIM Birlesik Magazalar
Performance |
| Timeline |
| Turkcell Iletisim |
| BIM Birlesik Magazalar |
Turkcell Iletisim and BIM Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkcell Iletisim and BIM Birlesik
The main advantage of trading using opposite Turkcell Iletisim and BIM Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkcell Iletisim position performs unexpectedly, BIM Birlesik 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 BIM Birlesik will offset losses from the drop in BIM Birlesik's long position.| Turkcell Iletisim vs. Turk Telekomunikasyon AS | Turkcell Iletisim vs. Aselsan Elektronik Sanayi | Turkcell Iletisim vs. Koc Holding AS | Turkcell Iletisim vs. Turkiye Petrol Rafinerileri |
| BIM Birlesik vs. Eregli Demir ve | BIM Birlesik vs. Turkiye Petrol Rafinerileri | BIM Birlesik vs. Turkiye Sise ve | BIM Birlesik vs. Ford Otomotiv Sanayi |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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