Correlation Between Turk Telekomunikasyon and Eminis Ambalaj
Can any of the company-specific risk be diversified away by investing in both Turk Telekomunikasyon and Eminis Ambalaj 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 Eminis Ambalaj 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 Eminis Ambalaj Sanayi, you can compare the effects of market volatilities on Turk Telekomunikasyon and Eminis Ambalaj 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 Eminis Ambalaj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Telekomunikasyon and Eminis Ambalaj.
Diversification Opportunities for Turk Telekomunikasyon and Eminis Ambalaj
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turk and Eminis is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Turk Telekomunikasyon AS and Eminis Ambalaj Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eminis Ambalaj Sanayi 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 Eminis Ambalaj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eminis Ambalaj Sanayi has no effect on the direction of Turk Telekomunikasyon i.e., Turk Telekomunikasyon and Eminis Ambalaj go up and down completely randomly.
Pair Corralation between Turk Telekomunikasyon and Eminis Ambalaj
Assuming the 90 days trading horizon Turk Telekomunikasyon is expected to generate 39.21 times less return on investment than Eminis Ambalaj. But when comparing it to its historical volatility, Turk Telekomunikasyon AS is 2.38 times less risky than Eminis Ambalaj. It trades about 0.01 of its potential returns per unit of risk. Eminis Ambalaj Sanayi is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 25,575 in Eminis Ambalaj Sanayi on November 28, 2024 and sell it today you would earn a total of 6,425 from holding Eminis Ambalaj Sanayi or generate 25.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Turk Telekomunikasyon AS vs. Eminis Ambalaj Sanayi
Performance |
| Timeline |
| Turk Telekomunikasyon |
| Eminis Ambalaj Sanayi |
Turk Telekomunikasyon and Eminis Ambalaj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Telekomunikasyon and Eminis Ambalaj
The main advantage of trading using opposite Turk Telekomunikasyon and Eminis Ambalaj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Telekomunikasyon position performs unexpectedly, Eminis Ambalaj 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 Eminis Ambalaj will offset losses from the drop in Eminis Ambalaj'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 |
| Eminis Ambalaj vs. ICBC Turkey Bank | Eminis Ambalaj vs. Politeknik Metal Sanayi | Eminis Ambalaj vs. KOC METALURJI | Eminis Ambalaj vs. Akbank TAS |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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