Correlation Between Turk Telekomunikasyon and Koza Altin
Can any of the company-specific risk be diversified away by investing in both Turk Telekomunikasyon and Koza Altin 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 Koza Altin 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 Koza Altin Isletmeleri, you can compare the effects of market volatilities on Turk Telekomunikasyon and Koza Altin 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 Koza Altin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Telekomunikasyon and Koza Altin.
Diversification Opportunities for Turk Telekomunikasyon and Koza Altin
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turk and Koza is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Turk Telekomunikasyon AS and Koza Altin Isletmeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Altin Isletmeleri 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 Koza Altin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Altin Isletmeleri has no effect on the direction of Turk Telekomunikasyon i.e., Turk Telekomunikasyon and Koza Altin go up and down completely randomly.
Pair Corralation between Turk Telekomunikasyon and Koza Altin
Assuming the 90 days trading horizon Turk Telekomunikasyon AS is expected to generate 0.83 times more return on investment than Koza Altin. However, Turk Telekomunikasyon AS is 1.21 times less risky than Koza Altin. It trades about -0.01 of its potential returns per unit of risk. Koza Altin Isletmeleri is currently generating about -0.08 per unit of risk. If you would invest 4,836 in Turk Telekomunikasyon AS on August 29, 2024 and sell it today you would lose (166.00) from holding Turk Telekomunikasyon AS or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turk Telekomunikasyon AS vs. Koza Altin Isletmeleri
Performance |
| Timeline |
| Turk Telekomunikasyon |
| Koza Altin Isletmeleri |
Turk Telekomunikasyon and Koza Altin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Telekomunikasyon and Koza Altin
The main advantage of trading using opposite Turk Telekomunikasyon and Koza Altin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Telekomunikasyon position performs unexpectedly, Koza Altin 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 Koza Altin will offset losses from the drop in Koza Altin'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 |
| Koza Altin vs. Qnb Finansbank AS | Koza Altin vs. QNB Finans Finansal | Koza Altin vs. Turkiye Kalkinma Bankasi | Koza Altin vs. Kocaer Celik 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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