Correlation Between Tekfen Holding and Is Finansal

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

Diversification Opportunities for Tekfen Holding and Is Finansal

0.3

Correlation Coefficient

Tekfen Holding  Is Finansal

Weak diversification

The 3 months correlation between Tekfen and ISFIN is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS and Is Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Finansal Kiralama 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 Is Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Finansal Kiralama has no effect on the direction of Tekfen Holding i.e., Tekfen Holding and Is Finansal go up and down completely randomly.

Pair Corralation between Tekfen Holding and Is Finansal

Assuming the 90 days trading horizon Tekfen Holding AS is expected to under-perform the Is Finansal. In addition to that, Tekfen Holding is 1.18 times more volatile than Is Finansal Kiralama. It trades about -0.18 of its total potential returns per unit of risk. Is Finansal Kiralama is currently generating about 0.32 per unit of volatility. If you would invest  1,103  in Is Finansal Kiralama on September 22, 2024 and sell it today you would earn a total of  152.00  from holding Is Finansal Kiralama or generate 13.78% return on investment over 90 days.

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

Tekfen Holding AS  vs.  Is Finansal Kiralama

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.

Is Finansal Kiralama

Risk-Adjusted Performance

6 of 100

Modest

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

Pair Trading with Tekfen Holding and Is Finansal

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

The idea behind Tekfen Holding AS and Is Finansal Kiralama 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.