Correlation Between Turk Telekomunikasyon and Turkcell Iletisim
Can any of the company-specific risk be diversified away by investing in both Turk Telekomunikasyon and Turkcell Iletisim 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 Turkcell Iletisim 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 Turkcell Iletisim Hizmetleri, you can compare the effects of market volatilities on Turk Telekomunikasyon and Turkcell Iletisim 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 Turkcell Iletisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Telekomunikasyon and Turkcell Iletisim.
Diversification Opportunities for Turk Telekomunikasyon and Turkcell Iletisim
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turk and Turkcell is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Turk Telekomunikasyon AS and Turkcell Iletisim Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkcell Iletisim 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 Turkcell Iletisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkcell Iletisim has no effect on the direction of Turk Telekomunikasyon i.e., Turk Telekomunikasyon and Turkcell Iletisim go up and down completely randomly.
Pair Corralation between Turk Telekomunikasyon and Turkcell Iletisim
Assuming the 90 days trading horizon Turk Telekomunikasyon AS is expected to generate 1.14 times more return on investment than Turkcell Iletisim. However, Turk Telekomunikasyon is 1.14 times more volatile than Turkcell Iletisim Hizmetleri. It trades about 0.12 of its potential returns per unit of risk. Turkcell Iletisim Hizmetleri is currently generating about 0.12 per unit of risk. If you would invest 1,466 in Turk Telekomunikasyon AS on August 29, 2024 and sell it today you would earn a total of 3,204 from holding Turk Telekomunikasyon AS or generate 218.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turk Telekomunikasyon AS vs. Turkcell Iletisim Hizmetleri
Performance |
| Timeline |
| Turk Telekomunikasyon |
| Turkcell Iletisim |
Turk Telekomunikasyon and Turkcell Iletisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Telekomunikasyon and Turkcell Iletisim
The main advantage of trading using opposite Turk Telekomunikasyon and Turkcell Iletisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Telekomunikasyon position performs unexpectedly, Turkcell Iletisim 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 Turkcell Iletisim will offset losses from the drop in Turkcell Iletisim'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 |
| Turkcell Iletisim vs. Yibitas Yozgat Isci | Turkcell Iletisim vs. Ege Endustri ve | Turkcell Iletisim vs. Borusan Yatirim ve | Turkcell Iletisim vs. Turkiye Petrol Rafinerileri |
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 CEOs Directory module to screen CEOs from public companies around the world.
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