Correlation Between Tekfen Holding and Turkiye Is

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

Diversification Opportunities for Tekfen Holding and Turkiye Is

0.01

Correlation Coefficient

Tekfen Holding  Turkiye Is

Significant diversification

The 3 months correlation between Tekfen and Turkiye is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS and Turkiye Is Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Is Bankasi 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 Turkiye Is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Is Bankasi has no effect on the direction of Tekfen Holding i.e., Tekfen Holding and Turkiye Is go up and down completely randomly.

Pair Corralation between Tekfen Holding and Turkiye Is

Assuming the 90 days trading horizon Tekfen Holding AS is expected to under-perform the Turkiye Is. In addition to that, Tekfen Holding is 1.55 times more volatile than Turkiye Is Bankasi. It trades about -0.18 of its total potential returns per unit of risk. Turkiye Is Bankasi is currently generating about -0.01 per unit of volatility. If you would invest  1,320  in Turkiye Is Bankasi on September 22, 2024 and sell it today you would lose (5.00) from holding Turkiye Is Bankasi or give up 0.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Tekfen Holding AS  vs.  Turkiye Is Bankasi

Tekfen Holding AS

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tekfen Holding AS are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Tekfen Holding demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Turkiye Is Bankasi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkiye Is Bankasi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Turkiye Is is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Tekfen Holding and Turkiye Is

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

The idea behind Tekfen Holding AS and Turkiye Is Bankasi 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..