Correlation Between Turk Telekomunikasyon and Emlak Konut
Can any of the company-specific risk be diversified away by investing in both Turk Telekomunikasyon and Emlak Konut 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 Emlak Konut 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 Emlak Konut Gayrimenkul, you can compare the effects of market volatilities on Turk Telekomunikasyon and Emlak Konut 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 Emlak Konut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Telekomunikasyon and Emlak Konut.
Diversification Opportunities for Turk Telekomunikasyon and Emlak Konut
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turk and Emlak is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Turk Telekomunikasyon AS and Emlak Konut Gayrimenkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emlak Konut Gayrimenkul 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 Emlak Konut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emlak Konut Gayrimenkul has no effect on the direction of Turk Telekomunikasyon i.e., Turk Telekomunikasyon and Emlak Konut go up and down completely randomly.
Pair Corralation between Turk Telekomunikasyon and Emlak Konut
Assuming the 90 days trading horizon Turk Telekomunikasyon AS is expected to generate 0.87 times more return on investment than Emlak Konut. However, Turk Telekomunikasyon AS is 1.15 times less risky than Emlak Konut. It trades about 0.08 of its potential returns per unit of risk. Emlak Konut Gayrimenkul is currently generating about 0.04 per unit of risk. If you would invest 3,270 in Turk Telekomunikasyon AS on August 28, 2024 and sell it today you would earn a total of 1,384 from holding Turk Telekomunikasyon AS or generate 42.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.51% |
| Values | Daily Returns |
Turk Telekomunikasyon AS vs. Emlak Konut Gayrimenkul
Performance |
| Timeline |
| Turk Telekomunikasyon |
| Emlak Konut Gayrimenkul |
Turk Telekomunikasyon and Emlak Konut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Telekomunikasyon and Emlak Konut
The main advantage of trading using opposite Turk Telekomunikasyon and Emlak Konut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Telekomunikasyon position performs unexpectedly, Emlak Konut 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 Emlak Konut will offset losses from the drop in Emlak Konut'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 |
| Emlak Konut vs. Yapi ve Kredi | Emlak Konut vs. Petkim Petrokimya Holding | Emlak Konut vs. Turkiye Is Bankasi | Emlak Konut vs. Kardemir Karabuk Demir |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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