Correlation Between Tekfen Holding and Indeks Bilgisayar
Can any of the company-specific risk be diversified away by investing in both Tekfen Holding and Indeks Bilgisayar 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 Indeks Bilgisayar 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 Indeks Bilgisayar Sistemleri, you can compare the effects of market volatilities on Tekfen Holding and Indeks Bilgisayar 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 Indeks Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekfen Holding and Indeks Bilgisayar.
Diversification Opportunities for Tekfen Holding and Indeks Bilgisayar
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tekfen and Indeks is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS and Indeks Bilgisayar Sistemleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indeks Bilgisayar 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 Indeks Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indeks Bilgisayar has no effect on the direction of Tekfen Holding i.e., Tekfen Holding and Indeks Bilgisayar go up and down completely randomly.
Pair Corralation between Tekfen Holding and Indeks Bilgisayar
Assuming the 90 days trading horizon Tekfen Holding AS is expected to generate 1.28 times more return on investment than Indeks Bilgisayar. However, Tekfen Holding is 1.28 times more volatile than Indeks Bilgisayar Sistemleri. It trades about 0.35 of its potential returns per unit of risk. Indeks Bilgisayar Sistemleri is currently generating about -0.01 per unit of risk. If you would invest 6,750 in Tekfen Holding AS on December 30, 2024 and sell it today you would earn a total of 8,250 from holding Tekfen Holding AS or generate 122.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tekfen Holding AS vs. Indeks Bilgisayar Sistemleri
Performance |
Timeline |
Tekfen Holding AS |
Indeks Bilgisayar |
Tekfen Holding and Indeks Bilgisayar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tekfen Holding and Indeks Bilgisayar
The main advantage of trading using opposite Tekfen Holding and Indeks Bilgisayar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekfen Holding position performs unexpectedly, Indeks Bilgisayar 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 Indeks Bilgisayar will offset losses from the drop in Indeks Bilgisayar's long position.Tekfen Holding vs. Turkiye Sise ve | Tekfen Holding vs. Turkiye Petrol Rafinerileri | Tekfen Holding vs. Petkim Petrokimya Holding | Tekfen Holding vs. TAV Havalimanlari Holding |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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