Correlation Between Turkcell Iletisim and Telephone

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Can any of the company-specific risk be diversified away by investing in both Turkcell Iletisim and Telephone 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 Telephone 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 Telephone and Data, you can compare the effects of market volatilities on Turkcell Iletisim and Telephone 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 Telephone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkcell Iletisim and Telephone.

Diversification Opportunities for Turkcell Iletisim and Telephone

TurkcellTelephoneDiversified AwayTurkcellTelephoneDiversified Away100%
0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between Turkcell and Telephone is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Turkcell Iletisim Hizmetleri and Telephone and Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telephone and Data 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 Telephone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telephone and Data has no effect on the direction of Turkcell Iletisim i.e., Turkcell Iletisim and Telephone go up and down completely randomly.

Pair Corralation between Turkcell Iletisim and Telephone

Considering the 90-day investment horizon Turkcell Iletisim is expected to generate 2.02 times less return on investment than Telephone. In addition to that, Turkcell Iletisim is 1.31 times more volatile than Telephone and Data. It trades about 0.15 of its total potential returns per unit of risk. Telephone and Data is currently generating about 0.41 per unit of volatility. If you would invest  3,600  in Telephone and Data on November 21, 2024 and sell it today you would earn a total of  350.00  from holding Telephone and Data or generate 9.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Turkcell Iletisim Hizmetleri  vs.  Telephone and Data

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5051015
JavaScript chart by amCharts 3.21.15TKC TDS
       Timeline  
Turkcell Iletisim 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Turkcell Iletisim Hizmetleri are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal forward-looking signals, Turkcell Iletisim may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb6.46.66.877.27.47.6
Telephone and Data 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Telephone and Data are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal fundamental indicators, Telephone unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb313233343536373839

Turkcell Iletisim and Telephone Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.22-3.18-2.15-1.11-0.07041.052.183.314.445.56 0.050.100.150.20
JavaScript chart by amCharts 3.21.15TKC TDS
       Returns  

Pair Trading with Turkcell Iletisim and Telephone

The main advantage of trading using opposite Turkcell Iletisim and Telephone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkcell Iletisim position performs unexpectedly, Telephone 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 Telephone will offset losses from the drop in Telephone's long position.
The idea behind Turkcell Iletisim Hizmetleri and Telephone and Data 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.
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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