Correlation Between Turkcell Iletisim and Brisa Bridgestone
Can any of the company-specific risk be diversified away by investing in both Turkcell Iletisim and Brisa Bridgestone 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 Brisa Bridgestone 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 Brisa Bridgestone Sabanci, you can compare the effects of market volatilities on Turkcell Iletisim and Brisa Bridgestone 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 Brisa Bridgestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkcell Iletisim and Brisa Bridgestone.
Diversification Opportunities for Turkcell Iletisim and Brisa Bridgestone
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkcell and Brisa is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Turkcell Iletisim Hizmetleri and Brisa Bridgestone Sabanci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brisa Bridgestone Sabanci 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 Brisa Bridgestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brisa Bridgestone Sabanci has no effect on the direction of Turkcell Iletisim i.e., Turkcell Iletisim and Brisa Bridgestone go up and down completely randomly.
Pair Corralation between Turkcell Iletisim and Brisa Bridgestone
Assuming the 90 days trading horizon Turkcell Iletisim Hizmetleri is expected to generate 0.9 times more return on investment than Brisa Bridgestone. However, Turkcell Iletisim Hizmetleri is 1.11 times less risky than Brisa Bridgestone. It trades about -0.04 of its potential returns per unit of risk. Brisa Bridgestone Sabanci is currently generating about -0.04 per unit of risk. If you would invest 10,260 in Turkcell Iletisim Hizmetleri on August 31, 2024 and sell it today you would lose (1,205) from holding Turkcell Iletisim Hizmetleri or give up 11.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkcell Iletisim Hizmetleri vs. Brisa Bridgestone Sabanci
Performance |
| Timeline |
| Turkcell Iletisim |
| Brisa Bridgestone Sabanci |
Turkcell Iletisim and Brisa Bridgestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkcell Iletisim and Brisa Bridgestone
The main advantage of trading using opposite Turkcell Iletisim and Brisa Bridgestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkcell Iletisim position performs unexpectedly, Brisa Bridgestone 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 Brisa Bridgestone will offset losses from the drop in Brisa Bridgestone's long position.| Turkcell Iletisim vs. Trabzon Liman Isletmeciligi | Turkcell Iletisim vs. Bayrak EBT Taban | Turkcell Iletisim vs. Birikim Varlik Yonetim | Turkcell Iletisim vs. Inveo Yatirim Holding |
| Brisa Bridgestone vs. Aksa Akrilik Kimya | Brisa Bridgestone vs. Kordsa Global Endustriyel | Brisa Bridgestone vs. Tofas Turk Otomobil | Brisa Bridgestone vs. Arcelik AS |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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