Correlation Between Tekfen Holding and Turkiye Sigorta
Can any of the company-specific risk be diversified away by investing in both Tekfen Holding and Turkiye Sigorta 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 Sigorta 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 Sigorta AS, you can compare the effects of market volatilities on Tekfen Holding and Turkiye Sigorta 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 Sigorta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekfen Holding and Turkiye Sigorta.
Diversification Opportunities for Tekfen Holding and Turkiye Sigorta
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tekfen and Turkiye is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS and Turkiye Sigorta AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Sigorta AS 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 Sigorta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Sigorta AS has no effect on the direction of Tekfen Holding i.e., Tekfen Holding and Turkiye Sigorta go up and down completely randomly.
Pair Corralation between Tekfen Holding and Turkiye Sigorta
Assuming the 90 days trading horizon Tekfen Holding is expected to generate 2.95 times less return on investment than Turkiye Sigorta. In addition to that, Tekfen Holding is 1.07 times more volatile than Turkiye Sigorta AS. It trades about 0.05 of its total potential returns per unit of risk. Turkiye Sigorta AS is currently generating about 0.17 per unit of volatility. If you would invest 229.00 in Turkiye Sigorta AS on November 1, 2024 and sell it today you would earn a total of 1,561 from holding Turkiye Sigorta AS or generate 681.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekfen Holding AS vs. Turkiye Sigorta AS
Performance |
| Timeline |
| Tekfen Holding AS |
| Turkiye Sigorta AS |
Tekfen Holding and Turkiye Sigorta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekfen Holding and Turkiye Sigorta
The main advantage of trading using opposite Tekfen Holding and Turkiye Sigorta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekfen Holding position performs unexpectedly, Turkiye Sigorta 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 Sigorta will offset losses from the drop in Turkiye Sigorta'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 |
| Turkiye Sigorta vs. Turk Telekomunikasyon AS | Turkiye Sigorta vs. Tekfen Holding AS | Turkiye Sigorta vs. Enerjisa Enerji AS | Turkiye Sigorta vs. Haci Omer Sabanci |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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