Correlation Between Turkcell Iletisim and Turkiye Sise

Can any of the company-specific risk be diversified away by investing in both Turkcell Iletisim and Turkiye Sise 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 Turkcell Iletisim and Turkiye Sise into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Turkcell Iletisim Hizmetleri and Turkiye Sise ve, you can compare the effects of market volatilities on Turkcell Iletisim and Turkiye Sise 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 Turkcell Iletisim with a short position of Turkiye Sise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkcell Iletisim and Turkiye Sise.

Diversification Opportunities for Turkcell Iletisim and Turkiye Sise

0.33

Correlation Coefficient

Turkcell Iletisim  Turkiye Sise

Weak diversification

The 3 months correlation between Turkcell and Turkiye is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Turkcell Iletisim Hizmetleri and Turkiye Sise ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Sise ve and Turkcell Iletisim 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 Turkcell Iletisim Hizmetleri are associated (or correlated) with Turkiye Sise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Sise ve has no effect on the direction of Turkcell Iletisim i.e., Turkcell Iletisim and Turkiye Sise go up and down completely randomly.

Pair Corralation between Turkcell Iletisim and Turkiye Sise

Assuming the 90 days trading horizon Turkcell Iletisim Hizmetleri is expected to generate 0.74 times more return on investment than Turkiye Sise. However, Turkcell Iletisim Hizmetleri is 1.36 times less risky than Turkiye Sise. It trades about 0.53 of its potential returns per unit of risk. Turkiye Sise ve is currently generating about 0.38 per unit of risk. If you would invest  7,740  in Turkcell Iletisim Hizmetleri on February 21, 2024 and sell it today you would earn a total of  970.00  from holding Turkcell Iletisim Hizmetleri or generate 12.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Turkcell Iletisim Hizmetleri  vs.  Turkiye Sise ve

Turkcell Iletisim

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Turkcell Iletisim Hizmetleri are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent essential indicators, Turkcell Iletisim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Turkiye Sise ve

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Sise ve are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Turkiye Sise is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Turkcell Iletisim and Turkiye Sise

The main advantage of trading using opposite Turkcell Iletisim and Turkiye Sise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkcell Iletisim position performs unexpectedly, Turkiye Sise 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 Sise will offset losses from the drop in Turkiye Sise's long position.

The idea behind Turkcell Iletisim Hizmetleri and Turkiye Sise ve pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.