Correlation Between Turk Telekomunikasyon and Halk Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Turk Telekomunikasyon and Halk Gayrimenkul 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 Halk Gayrimenkul 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 Halk Gayrimenkul Yatirim, you can compare the effects of market volatilities on Turk Telekomunikasyon and Halk Gayrimenkul 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 Halk Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Telekomunikasyon and Halk Gayrimenkul.
Diversification Opportunities for Turk Telekomunikasyon and Halk Gayrimenkul
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Turk and Halk is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Turk Telekomunikasyon AS and Halk Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halk Gayrimenkul Yatirim 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 Halk Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halk Gayrimenkul Yatirim has no effect on the direction of Turk Telekomunikasyon i.e., Turk Telekomunikasyon and Halk Gayrimenkul go up and down completely randomly.
Pair Corralation between Turk Telekomunikasyon and Halk Gayrimenkul
Assuming the 90 days trading horizon Turk Telekomunikasyon AS is expected to under-perform the Halk Gayrimenkul. But the stock apears to be less risky and, when comparing its historical volatility, Turk Telekomunikasyon AS is 1.38 times less risky than Halk Gayrimenkul. The stock trades about -0.06 of its potential returns per unit of risk. The Halk Gayrimenkul Yatirim is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 221.00 in Halk Gayrimenkul Yatirim on September 5, 2024 and sell it today you would earn a total of 56.00 from holding Halk Gayrimenkul Yatirim or generate 25.34% 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. Halk Gayrimenkul Yatirim
Performance |
| Timeline |
| Turk Telekomunikasyon |
| Halk Gayrimenkul Yatirim |
Turk Telekomunikasyon and Halk Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Telekomunikasyon and Halk Gayrimenkul
The main advantage of trading using opposite Turk Telekomunikasyon and Halk Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Telekomunikasyon position performs unexpectedly, Halk Gayrimenkul 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 Halk Gayrimenkul will offset losses from the drop in Halk Gayrimenkul's long position.| Turk Telekomunikasyon vs. Koc Holding AS | Turk Telekomunikasyon vs. ENKA Insaat ve | Turk Telekomunikasyon vs. Arcelik AS | Turk Telekomunikasyon vs. Eregli Demir ve |
| Halk Gayrimenkul vs. MEGA METAL | Halk Gayrimenkul vs. Turkish Airlines | Halk Gayrimenkul vs. Gentas Genel Metal | Halk Gayrimenkul vs. Cuhadaroglu Metal Sanayi |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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