Correlation Between Comcast Corp and Turk Telekomunikasyon

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

By analyzing existing cross correlation between Comcast Corp and Turk Telekomunikasyon AS, you can compare the effects of market volatilities on Comcast Corp and Turk Telekomunikasyon 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 Comcast Corp with a short position of Turk Telekomunikasyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and Turk Telekomunikasyon.

Diversification Opportunities for Comcast Corp and Turk Telekomunikasyon

0.72

Correlation Coefficient

Comcast Corp  Turk Telekomunikasyon

Poor diversification

The 3 months correlation between Comcast and Turk is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Turk Telekomunikasyon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Telekomunikasyon and Comcast Corp 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 Comcast Corp are associated (or correlated) with Turk Telekomunikasyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Telekomunikasyon has no effect on the direction of Comcast Corp i.e., Comcast Corp and Turk Telekomunikasyon go up and down completely randomly.

Pair Corralation between Comcast Corp and Turk Telekomunikasyon

Assuming the 90 days horizon Comcast Corp is expected to under-perform the Turk Telekomunikasyon. In addition to that, Comcast Corp is 1.68 times more volatile than Turk Telekomunikasyon AS. It trades about -0.09 of its total potential returns per unit of risk. Turk Telekomunikasyon AS is currently generating about -0.12 per unit of volatility. If you would invest  275.00  in Turk Telekomunikasyon AS on October 25, 2024 and sell it today you would lose (21.00) from holding Turk Telekomunikasyon AS or give up 7.64% of portfolio value over 90 days.

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

Comcast Corp  vs.  Turk Telekomunikasyon AS

Comcast Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Comcast Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Turk Telekomunikasyon

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turk Telekomunikasyon AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Comcast Corp and Turk Telekomunikasyon

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

The idea behind Comcast Corp and Turk Telekomunikasyon AS 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.