Correlation Between Tekfen Holding and Migros Ticaret

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

Diversification Opportunities for Tekfen Holding and Migros Ticaret

-0.14

Correlation Coefficient

Tekfen Holding  Migros Ticaret

Good diversification

The 3 months correlation between Tekfen and Migros is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS and Migros Ticaret AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Migros Ticaret AS 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 Migros Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Migros Ticaret AS has no effect on the direction of Tekfen Holding i.e., Tekfen Holding and Migros Ticaret go up and down completely randomly.

Pair Corralation between Tekfen Holding and Migros Ticaret

Assuming the 90 days trading horizon Tekfen Holding AS is expected to under-perform the Migros Ticaret. In addition to that, Tekfen Holding is 2.04 times more volatile than Migros Ticaret AS. It trades about -0.21 of its total potential returns per unit of risk. Migros Ticaret AS is currently generating about 0.03 per unit of volatility. If you would invest  52,800  in Migros Ticaret AS on October 12, 2024 and sell it today you would earn a total of  500.00  from holding Migros Ticaret AS or generate 0.95% return on investment over 90 days.

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

Tekfen Holding AS  vs.  Migros Ticaret AS

Tekfen Holding AS

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tekfen Holding AS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Tekfen Holding is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Migros Ticaret AS

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Migros Ticaret AS are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Migros Ticaret demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tekfen Holding and Migros Ticaret

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

The idea behind Tekfen Holding AS and Migros Ticaret AS 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.