Correlation Between Turk Telekomunikasyon and Berkosan Yalitim
Can any of the company-specific risk be diversified away by investing in both Turk Telekomunikasyon and Berkosan Yalitim 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 Turk Telekomunikasyon and Berkosan Yalitim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turk Telekomunikasyon AS and Berkosan Yalitim ve, you can compare the effects of market volatilities on Turk Telekomunikasyon and Berkosan Yalitim 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 Turk Telekomunikasyon with a short position of Berkosan Yalitim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Telekomunikasyon and Berkosan Yalitim.
Diversification Opportunities for Turk Telekomunikasyon and Berkosan Yalitim
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Turk and Berkosan is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Turk Telekomunikasyon AS and Berkosan Yalitim ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkosan Yalitim and Turk Telekomunikasyon 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 Turk Telekomunikasyon AS are associated (or correlated) with Berkosan Yalitim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkosan Yalitim has no effect on the direction of Turk Telekomunikasyon i.e., Turk Telekomunikasyon and Berkosan Yalitim go up and down completely randomly.
Pair Corralation between Turk Telekomunikasyon and Berkosan Yalitim
Assuming the 90 days trading horizon Turk Telekomunikasyon AS is expected to generate 0.9 times more return on investment than Berkosan Yalitim. However, Turk Telekomunikasyon AS is 1.11 times less risky than Berkosan Yalitim. It trades about 0.01 of its potential returns per unit of risk. Berkosan Yalitim ve is currently generating about -0.11 per unit of risk. If you would invest 4,890 in Turk Telekomunikasyon AS on November 28, 2024 and sell it today you would earn a total of 10.00 from holding Turk Telekomunikasyon AS or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turk Telekomunikasyon AS vs. Berkosan Yalitim ve
Performance |
| Timeline |
| Turk Telekomunikasyon |
| Berkosan Yalitim |
Turk Telekomunikasyon and Berkosan Yalitim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Telekomunikasyon and Berkosan Yalitim
The main advantage of trading using opposite Turk Telekomunikasyon and Berkosan Yalitim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Telekomunikasyon position performs unexpectedly, Berkosan Yalitim 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 Berkosan Yalitim will offset losses from the drop in Berkosan Yalitim's long position.| Turk Telekomunikasyon vs. Turkcell Iletisim Hizmetleri | Turk Telekomunikasyon vs. Haci Omer Sabanci | Turk Telekomunikasyon vs. Arcelik AS | Turk Telekomunikasyon vs. Petkim Petrokimya Holding |
| Berkosan Yalitim vs. Bms Birlesik Metal | Berkosan Yalitim vs. Akbank TAS | Berkosan Yalitim vs. Qnb Finansbank AS | Berkosan Yalitim vs. Koza Anadolu 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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