Correlation Between Tofas Turk and Turkcell Iletisim
Can any of the company-specific risk be diversified away by investing in both Tofas Turk and Turkcell Iletisim 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 Tofas Turk and Turkcell Iletisim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tofas Turk Otomobil and Turkcell Iletisim Hizmetleri, you can compare the effects of market volatilities on Tofas Turk and Turkcell Iletisim 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 Tofas Turk with a short position of Turkcell Iletisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tofas Turk and Turkcell Iletisim.
Diversification Opportunities for Tofas Turk and Turkcell Iletisim
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tofas and Turkcell is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Tofas Turk Otomobil and Turkcell Iletisim Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkcell Iletisim and Tofas Turk 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 Tofas Turk Otomobil are associated (or correlated) with Turkcell Iletisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkcell Iletisim has no effect on the direction of Tofas Turk i.e., Tofas Turk and Turkcell Iletisim go up and down completely randomly.
Pair Corralation between Tofas Turk and Turkcell Iletisim
Assuming the 90 days trading horizon Tofas Turk Otomobil is expected to generate 1.03 times more return on investment than Turkcell Iletisim. However, Tofas Turk is 1.03 times more volatile than Turkcell Iletisim Hizmetleri. It trades about 0.14 of its potential returns per unit of risk. Turkcell Iletisim Hizmetleri is currently generating about 0.13 per unit of risk. If you would invest 18,600 in Tofas Turk Otomobil on September 2, 2024 and sell it today you would earn a total of 1,200 from holding Tofas Turk Otomobil or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tofas Turk Otomobil vs. Turkcell Iletisim Hizmetleri
Performance |
| Timeline |
| Tofas Turk Otomobil |
| Turkcell Iletisim |
Tofas Turk and Turkcell Iletisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tofas Turk and Turkcell Iletisim
The main advantage of trading using opposite Tofas Turk and Turkcell Iletisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tofas Turk position performs unexpectedly, Turkcell Iletisim 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 Turkcell Iletisim will offset losses from the drop in Turkcell Iletisim's long position.| Tofas Turk vs. Ford Otomotiv Sanayi | Tofas Turk vs. Eregli Demir ve | Tofas Turk vs. Turkiye Petrol Rafinerileri | Tofas Turk vs. Turkiye Sise ve |
| Turkcell Iletisim vs. Trabzon Liman Isletmeciligi | Turkcell Iletisim vs. Bayrak EBT Taban | Turkcell Iletisim vs. Birikim Varlik Yonetim | Turkcell Iletisim vs. Inveo Yatirim Holding |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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