Correlation Between Turkcell Iletisim and ATT

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

Diversification Opportunities for Turkcell Iletisim and ATT

0.36

Correlation Coefficient

Turkcell Iletisim  ATT

Weak diversification

The 3 months correlation between Turkcell and ATT is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Turkcell Iletisim Hizmetleri and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of Turkcell Iletisim i.e., Turkcell Iletisim and ATT go up and down completely randomly.

Pair Corralation between Turkcell Iletisim and ATT

Considering the 90-day investment horizon Turkcell Iletisim Hizmetleri is expected to under-perform the ATT. In addition to that, Turkcell Iletisim is 6.18 times more volatile than ATT Inc. It trades about -0.03 of its total potential returns per unit of risk. ATT Inc is currently generating about -0.1 per unit of volatility. If you would invest  2,406  in ATT Inc on December 28, 2024 and sell it today you would lose (71.00) from holding ATT Inc or give up 2.95% of portfolio value over 90 days.

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

Turkcell Iletisim Hizmetleri  vs.  ATT Inc

Turkcell Iletisim

Risk-Adjusted Performance

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 rather sound forward-looking signals, Turkcell Iletisim is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

ATT Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ATT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, ATT is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Turkcell Iletisim and ATT

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

The idea behind Turkcell Iletisim Hizmetleri and ATT Inc 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.