Correlation Between Turk Telekomunikasyon and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Turk Telekomunikasyon and Coca Cola 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 Coca Cola 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 Coca Cola Icecek AS, you can compare the effects of market volatilities on Turk Telekomunikasyon and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Telekomunikasyon and Coca Cola.
Diversification Opportunities for Turk Telekomunikasyon and Coca Cola
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turk and Coca is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Turk Telekomunikasyon AS and Coca Cola Icecek AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Icecek 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola Icecek has no effect on the direction of Turk Telekomunikasyon i.e., Turk Telekomunikasyon and Coca Cola go up and down completely randomly.
Pair Corralation between Turk Telekomunikasyon and Coca Cola
Assuming the 90 days trading horizon Turk Telekomunikasyon is expected to generate 8.2 times less return on investment than Coca Cola. But when comparing it to its historical volatility, Turk Telekomunikasyon AS is 13.28 times less risky than Coca Cola. It trades about 0.08 of its potential returns per unit of risk. Coca Cola Icecek AS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,692 in Coca Cola Icecek AS on August 30, 2024 and sell it today you would earn a total of 3,873 from holding Coca Cola Icecek AS or generate 228.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turk Telekomunikasyon AS vs. Coca Cola Icecek AS
Performance |
| Timeline |
| Turk Telekomunikasyon |
| Coca Cola Icecek |
Turk Telekomunikasyon and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Telekomunikasyon and Coca Cola
The main advantage of trading using opposite Turk Telekomunikasyon and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Telekomunikasyon position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola'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 |
| Coca Cola vs. Anadolu Efes Biracilik | Coca Cola vs. BIM Birlesik Magazalar | Coca Cola vs. TAV Havalimanlari Holding | Coca Cola vs. Turkiye Sise ve |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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