Correlation Between Turk Telekomunikasyon and Turk Tuborg
Can any of the company-specific risk be diversified away by investing in both Turk Telekomunikasyon and Turk Tuborg 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 Turk Tuborg 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 Turk Tuborg Bira, you can compare the effects of market volatilities on Turk Telekomunikasyon and Turk Tuborg 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 Turk Tuborg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Telekomunikasyon and Turk Tuborg.
Diversification Opportunities for Turk Telekomunikasyon and Turk Tuborg
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Turk and Turk is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Turk Telekomunikasyon AS and Turk Tuborg Bira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Tuborg Bira 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 Turk Tuborg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Tuborg Bira has no effect on the direction of Turk Telekomunikasyon i.e., Turk Telekomunikasyon and Turk Tuborg go up and down completely randomly.
Pair Corralation between Turk Telekomunikasyon and Turk Tuborg
Assuming the 90 days trading horizon Turk Telekomunikasyon is expected to generate 6.74 times less return on investment than Turk Tuborg. But when comparing it to its historical volatility, Turk Telekomunikasyon AS is 1.33 times less risky than Turk Tuborg. It trades about 0.02 of its potential returns per unit of risk. Turk Tuborg Bira is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 12,300 in Turk Tuborg Bira on August 29, 2024 and sell it today you would earn a total of 730.00 from holding Turk Tuborg Bira or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turk Telekomunikasyon AS vs. Turk Tuborg Bira
Performance |
| Timeline |
| Turk Telekomunikasyon |
| Turk Tuborg Bira |
Turk Telekomunikasyon and Turk Tuborg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Telekomunikasyon and Turk Tuborg
The main advantage of trading using opposite Turk Telekomunikasyon and Turk Tuborg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Telekomunikasyon position performs unexpectedly, Turk Tuborg 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 Turk Tuborg will offset losses from the drop in Turk Tuborg'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 |
| Turk Tuborg vs. Koza Anadolu Metal | Turk Tuborg vs. Turkiye Kalkinma Bankasi | Turk Tuborg vs. Gentas Genel Metal | Turk Tuborg vs. Akcansa Cimento 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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