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

0.51

Correlation Coefficient

Turkcell Iletisim  ATT

Very weak diversification

The 3 months correlation between Turkcell and ATT is 0.51. 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 generate 3.21 times more return on investment than ATT. However, Turkcell Iletisim is 3.21 times more volatile than ATT Inc. It trades about 0.15 of its potential returns per unit of risk. ATT Inc is currently generating about 0.1 per unit of risk. If you would invest  641.00  in Turkcell Iletisim Hizmetleri on November 28, 2024 and sell it today you would earn a total of  83.00  from holding Turkcell Iletisim Hizmetleri or generate 12.95% return on investment over 90 days.

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

Turkcell Iletisim Hizmetleri  vs.  ATT Inc

Turkcell Iletisim

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Turkcell Iletisim Hizmetleri are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal forward-looking signals, Turkcell Iletisim exhibited solid returns over the last few months and may actually be approaching a breakup point.

ATT Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. 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.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.