Correlation Between Telefonica Brasil and Turkcell Iletisim
Can any of the company-specific risk be diversified away by investing in both Telefonica Brasil 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 Telefonica Brasil and Turkcell Iletisim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telefonica Brasil SA and Turkcell Iletisim Hizmetleri, you can compare the effects of market volatilities on Telefonica Brasil 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 Telefonica Brasil with a short position of Turkcell Iletisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telefonica Brasil and Turkcell Iletisim.
Diversification Opportunities for Telefonica Brasil and Turkcell Iletisim
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Telefonica and Turkcell is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Telefonica Brasil SA and Turkcell Iletisim Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkcell Iletisim and Telefonica Brasil 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 Telefonica Brasil SA 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 Telefonica Brasil i.e., Telefonica Brasil and Turkcell Iletisim go up and down completely randomly.
Pair Corralation between Telefonica Brasil and Turkcell Iletisim
Considering the 90-day investment horizon Telefonica Brasil SA is expected to under-perform the Turkcell Iletisim. But the stock apears to be less risky and, when comparing its historical volatility, Telefonica Brasil SA is 1.11 times less risky than Turkcell Iletisim. The stock trades about -0.19 of its potential returns per unit of risk. The Turkcell Iletisim Hizmetleri is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 628.00 in Turkcell Iletisim Hizmetleri on August 24, 2024 and sell it today you would earn a total of 55.00 from holding Turkcell Iletisim Hizmetleri or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telefonica Brasil SA vs. Turkcell Iletisim Hizmetleri
Performance |
| Timeline |
| Telefonica Brasil |
| Turkcell Iletisim |
Telefonica Brasil and Turkcell Iletisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telefonica Brasil and Turkcell Iletisim
The main advantage of trading using opposite Telefonica Brasil and Turkcell Iletisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telefonica Brasil 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.| Telefonica Brasil vs. Orange SA ADR | Telefonica Brasil vs. Vodafone Group PLC | Telefonica Brasil vs. Grupo Televisa SAB | Telefonica Brasil vs. America Movil SAB |
| Turkcell Iletisim vs. Telefonica Brasil SA | Turkcell Iletisim vs. TIM Participacoes SA | Turkcell Iletisim vs. Telkom Indonesia Tbk | Turkcell Iletisim vs. PLDT Inc ADR |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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