Correlation Between Turkcell Iletisim and Telefonica Brasil
Can any of the company-specific risk be diversified away by investing in both Turkcell Iletisim and Telefonica Brasil 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 Telefonica Brasil 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 Telefonica Brasil SA, you can compare the effects of market volatilities on Turkcell Iletisim and Telefonica Brasil 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 Telefonica Brasil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkcell Iletisim and Telefonica Brasil.
Diversification Opportunities for Turkcell Iletisim and Telefonica Brasil
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turkcell and Telefonica is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Turkcell Iletisim Hizmetleri and Telefonica Brasil SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telefonica Brasil 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 Telefonica Brasil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telefonica Brasil has no effect on the direction of Turkcell Iletisim i.e., Turkcell Iletisim and Telefonica Brasil go up and down completely randomly.
Pair Corralation between Turkcell Iletisim and Telefonica Brasil
Considering the 90-day investment horizon Turkcell Iletisim Hizmetleri is expected to generate 1.12 times more return on investment than Telefonica Brasil. However, Turkcell Iletisim is 1.12 times more volatile than Telefonica Brasil SA. It trades about 0.18 of its potential returns per unit of risk. Telefonica Brasil SA is currently generating about -0.18 per unit of risk. If you would invest 633.00 in Turkcell Iletisim Hizmetleri on August 23, 2024 and sell it today you would earn a total of 50.00 from holding Turkcell Iletisim Hizmetleri or generate 7.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkcell Iletisim Hizmetleri vs. Telefonica Brasil SA
Performance |
| Timeline |
| Turkcell Iletisim |
| Telefonica Brasil |
Turkcell Iletisim and Telefonica Brasil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkcell Iletisim and Telefonica Brasil
The main advantage of trading using opposite Turkcell Iletisim and Telefonica Brasil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkcell Iletisim position performs unexpectedly, Telefonica Brasil 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 Telefonica Brasil will offset losses from the drop in Telefonica Brasil's long position.| Turkcell Iletisim vs. Telefonica Brasil SA | Turkcell Iletisim vs. TIM Participacoes SA | Turkcell Iletisim vs. Telkom Indonesia Tbk | Turkcell Iletisim vs. PLDT Inc ADR |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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