Correlation Between Turkcell Iletisim and Desa Deri

Can any of the company-specific risk be diversified away by investing in both Turkcell Iletisim and Desa Deri 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 Desa Deri 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 Desa Deri Sanayi, you can compare the effects of market volatilities on Turkcell Iletisim and Desa Deri 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 Desa Deri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkcell Iletisim and Desa Deri.

Diversification Opportunities for Turkcell Iletisim and Desa Deri

-0.76

Correlation Coefficient

Turkcell Iletisim  Desa Deri

Pay attention - limited upside

The 3 months correlation between Turkcell and Desa is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Turkcell Iletisim Hizmetleri and Desa Deri Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Desa Deri Sanayi 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 Desa Deri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Desa Deri Sanayi has no effect on the direction of Turkcell Iletisim i.e., Turkcell Iletisim and Desa Deri go up and down completely randomly.

Pair Corralation between Turkcell Iletisim and Desa Deri

Assuming the 90 days trading horizon Turkcell Iletisim Hizmetleri is expected to generate 1.12 times more return on investment than Desa Deri. However, Turkcell Iletisim is 1.12 times more volatile than Desa Deri Sanayi. It trades about 0.12 of its potential returns per unit of risk. Desa Deri Sanayi is currently generating about -0.16 per unit of risk. If you would invest  8,907  in Turkcell Iletisim Hizmetleri on December 2, 2024 and sell it today you would earn a total of  1,163  from holding Turkcell Iletisim Hizmetleri or generate 13.06% return on investment over 90 days.

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

Turkcell Iletisim Hizmetleri  vs.  Desa Deri Sanayi

Turkcell Iletisim

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Turkcell Iletisim Hizmetleri are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turkcell Iletisim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Desa Deri Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Desa Deri Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Turkcell Iletisim and Desa Deri

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

The idea behind Turkcell Iletisim Hizmetleri and Desa Deri Sanayi 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.