Correlation Between Turk Telekomunikasyon and Turkiye Sigorta
Can any of the company-specific risk be diversified away by investing in both Turk Telekomunikasyon and Turkiye Sigorta 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 Turkiye Sigorta 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 Turkiye Sigorta AS, you can compare the effects of market volatilities on Turk Telekomunikasyon and Turkiye Sigorta 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 Turkiye Sigorta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Telekomunikasyon and Turkiye Sigorta.
Diversification Opportunities for Turk Telekomunikasyon and Turkiye Sigorta
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turk and Turkiye is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Turk Telekomunikasyon AS and Turkiye Sigorta AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Sigorta AS 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 Turkiye Sigorta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Sigorta AS has no effect on the direction of Turk Telekomunikasyon i.e., Turk Telekomunikasyon and Turkiye Sigorta go up and down completely randomly.
Pair Corralation between Turk Telekomunikasyon and Turkiye Sigorta
Assuming the 90 days trading horizon Turk Telekomunikasyon is expected to generate 1.62 times less return on investment than Turkiye Sigorta. In addition to that, Turk Telekomunikasyon is 1.06 times more volatile than Turkiye Sigorta AS. It trades about 0.17 of its total potential returns per unit of risk. Turkiye Sigorta AS is currently generating about 0.29 per unit of volatility. If you would invest 1,562 in Turkiye Sigorta AS on November 9, 2024 and sell it today you would earn a total of 204.00 from holding Turkiye Sigorta AS or generate 13.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turk Telekomunikasyon AS vs. Turkiye Sigorta AS
Performance |
| Timeline |
| Turk Telekomunikasyon |
| Turkiye Sigorta AS |
Turk Telekomunikasyon and Turkiye Sigorta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Telekomunikasyon and Turkiye Sigorta
The main advantage of trading using opposite Turk Telekomunikasyon and Turkiye Sigorta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Telekomunikasyon position performs unexpectedly, Turkiye Sigorta 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 Turkiye Sigorta will offset losses from the drop in Turkiye Sigorta'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 |
| Turkiye Sigorta vs. Turk Telekomunikasyon AS | Turkiye Sigorta vs. Tekfen Holding AS | Turkiye Sigorta vs. Enerjisa Enerji AS | Turkiye Sigorta vs. Haci Omer Sabanci |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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