Correlation Between Tekfen Holding and Turkiye Sise
Can any of the company-specific risk be diversified away by investing in both Tekfen Holding and Turkiye Sise 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 Turkiye Sise 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 Turkiye Sise ve, you can compare the effects of market volatilities on Tekfen Holding and Turkiye Sise 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 Turkiye Sise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekfen Holding and Turkiye Sise.
Diversification Opportunities for Tekfen Holding and Turkiye Sise
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tekfen and Turkiye is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS and Turkiye Sise ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Sise ve 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 Turkiye Sise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Sise ve has no effect on the direction of Tekfen Holding i.e., Tekfen Holding and Turkiye Sise go up and down completely randomly.
Pair Corralation between Tekfen Holding and Turkiye Sise
Assuming the 90 days trading horizon Tekfen Holding AS is expected to generate 1.47 times more return on investment than Turkiye Sise. However, Tekfen Holding is 1.47 times more volatile than Turkiye Sise ve. It trades about 0.09 of its potential returns per unit of risk. Turkiye Sise ve is currently generating about 0.0 per unit of risk. If you would invest 3,464 in Tekfen Holding AS on August 31, 2024 and sell it today you would earn a total of 4,266 from holding Tekfen Holding AS or generate 123.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Tekfen Holding AS vs. Turkiye Sise ve
Performance |
| Timeline |
| Tekfen Holding AS |
| Turkiye Sise ve |
Tekfen Holding and Turkiye Sise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekfen Holding and Turkiye Sise
The main advantage of trading using opposite Tekfen Holding and Turkiye Sise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekfen Holding position performs unexpectedly, Turkiye Sise 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 Turkiye Sise will offset losses from the drop in Turkiye Sise's long position.| Tekfen Holding vs. Aselsan Elektronik Sanayi | Tekfen Holding vs. Turkiye Petrol Rafinerileri | Tekfen Holding vs. Turkiye Sise ve | Tekfen Holding vs. Eregli Demir ve |
| Turkiye Sise vs. Eregli Demir ve | Turkiye Sise vs. Turkiye Petrol Rafinerileri | Turkiye Sise vs. Turkish Airlines | Turkiye Sise 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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