Correlation Between Turk Tuborg and Turk Telekomunikasyon

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

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

Diversification Opportunities for Turk Tuborg and Turk Telekomunikasyon

0.0

Correlation Coefficient

Turk Tuborg  Turk Telekomunikasyon

Pay attention - limited upside

The 3 months correlation between Turk and Turk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Turk Tuborg Bira and Turk Telekomunikasyon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Telekomunikasyon and Turk Tuborg 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 Tuborg Bira 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 Turk Tuborg i.e., Turk Tuborg and Turk Telekomunikasyon go up and down completely randomly.

Pair Corralation between Turk Tuborg and Turk Telekomunikasyon

If you would invest  4,378  in Turk Telekomunikasyon AS on October 6, 2024 and sell it today you would earn a total of  180.00  from holding Turk Telekomunikasyon AS or generate 4.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Turk Tuborg Bira  vs.  Turk Telekomunikasyon AS

Turk Tuborg Bira

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turk Tuborg Bira has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Turk Tuborg is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Turk Telekomunikasyon

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turk Telekomunikasyon AS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Turk Telekomunikasyon is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Turk Tuborg and Turk Telekomunikasyon

The main advantage of trading using opposite Turk Tuborg and Turk Telekomunikasyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Tuborg 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 Turk Tuborg Bira 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.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.