Correlation Between Anterix and Turkcell Iletisim

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

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

Diversification Opportunities for Anterix and Turkcell Iletisim

0.65

Correlation Coefficient

Anterix  Turkcell Iletisim

Poor diversification

The 3 months correlation between Anterix and Turkcell is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Anterix and Turkcell Iletisim Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkcell Iletisim and Anterix 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 Anterix 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 Anterix i.e., Anterix and Turkcell Iletisim go up and down completely randomly.

Pair Corralation between Anterix and Turkcell Iletisim

Given the investment horizon of 90 days Anterix is expected to generate 1.32 times more return on investment than Turkcell Iletisim. However, Anterix is 1.32 times more volatile than Turkcell Iletisim Hizmetleri. It trades about -0.01 of its potential returns per unit of risk. Turkcell Iletisim Hizmetleri is currently generating about -0.06 per unit of risk. If you would invest  3,582  in Anterix on September 1, 2024 and sell it today you would lose (112.00) from holding Anterix or give up 3.13% of portfolio value over 90 days.

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

Anterix  vs.  Turkcell Iletisim Hizmetleri

Anterix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Anterix is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Turkcell Iletisim

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkcell Iletisim Hizmetleri has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's forward-looking signals remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Anterix and Turkcell Iletisim

The main advantage of trading using opposite Anterix and Turkcell Iletisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anterix 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.

The idea behind Anterix and Turkcell Iletisim Hizmetleri 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.