Correlation Between Tekfen Holding and Escort Teknoloji
Can any of the company-specific risk be diversified away by investing in both Tekfen Holding and Escort Teknoloji 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 Tekfen Holding and Escort Teknoloji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tekfen Holding AS and Escort Teknoloji Yatirim, you can compare the effects of market volatilities on Tekfen Holding and Escort Teknoloji 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 Tekfen Holding with a short position of Escort Teknoloji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekfen Holding and Escort Teknoloji.
Diversification Opportunities for Tekfen Holding and Escort Teknoloji
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tekfen and Escort is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS and Escort Teknoloji Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escort Teknoloji Yatirim and Tekfen Holding 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 Tekfen Holding AS are associated (or correlated) with Escort Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escort Teknoloji Yatirim has no effect on the direction of Tekfen Holding i.e., Tekfen Holding and Escort Teknoloji go up and down completely randomly.
Pair Corralation between Tekfen Holding and Escort Teknoloji
Assuming the 90 days trading horizon Tekfen Holding AS is expected to generate 0.84 times more return on investment than Escort Teknoloji. However, Tekfen Holding AS is 1.19 times less risky than Escort Teknoloji. It trades about 0.08 of its potential returns per unit of risk. Escort Teknoloji Yatirim is currently generating about -0.05 per unit of risk. If you would invest 4,502 in Tekfen Holding AS on December 4, 2024 and sell it today you would earn a total of 2,663 from holding Tekfen Holding AS or generate 59.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Tekfen Holding AS vs. Escort Teknoloji Yatirim
Performance |
| Timeline |
| Tekfen Holding AS |
| Escort Teknoloji Yatirim |
Tekfen Holding and Escort Teknoloji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekfen Holding and Escort Teknoloji
The main advantage of trading using opposite Tekfen Holding and Escort Teknoloji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekfen Holding position performs unexpectedly, Escort Teknoloji 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 Escort Teknoloji will offset losses from the drop in Escort Teknoloji's long position.| Tekfen Holding vs. Turkiye Sise ve | Tekfen Holding vs. Turkiye Petrol Rafinerileri | Tekfen Holding vs. Petkim Petrokimya Holding | Tekfen Holding vs. TAV Havalimanlari Holding |
| Escort Teknoloji vs. Koza Anadolu Metal | Escort Teknoloji vs. MEGA METAL | Escort Teknoloji vs. Bms Birlesik Metal | Escort Teknoloji vs. Gentas Genel Metal |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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