Correlation Between Tekfen Holding and Celebi Hava

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

By analyzing existing cross correlation between Tekfen Holding AS and Celebi Hava Servisi, you can compare the effects of market volatilities on Tekfen Holding and Celebi Hava 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 Tekfen Holding with a short position of Celebi Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekfen Holding and Celebi Hava.

Diversification Opportunities for Tekfen Holding and Celebi Hava

0.6

Correlation Coefficient

Tekfen Holding  Celebi Hava

Poor diversification

The 3 months correlation between Tekfen and Celebi is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS and Celebi Hava Servisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celebi Hava Servisi and Tekfen Holding 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 Tekfen Holding AS are associated (or correlated) with Celebi Hava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celebi Hava Servisi has no effect on the direction of Tekfen Holding i.e., Tekfen Holding and Celebi Hava go up and down completely randomly.

Pair Corralation between Tekfen Holding and Celebi Hava

Assuming the 90 days trading horizon Tekfen Holding AS is expected to under-perform the Celebi Hava. In addition to that, Tekfen Holding is 2.47 times more volatile than Celebi Hava Servisi. It trades about -0.33 of its total potential returns per unit of risk. Celebi Hava Servisi is currently generating about -0.32 per unit of volatility. If you would invest  208,300  in Celebi Hava Servisi on October 5, 2024 and sell it today you would lose (17,000) from holding Celebi Hava Servisi or give up 8.16% of portfolio value over 90 days.

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

Tekfen Holding AS  vs.  Celebi Hava Servisi

Tekfen Holding AS

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tekfen Holding AS are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Tekfen Holding demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Celebi Hava Servisi

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Celebi Hava Servisi are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Celebi Hava may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Tekfen Holding and Celebi Hava

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

The idea behind Tekfen Holding AS and Celebi Hava Servisi 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.