Correlation Between Turk Telekomunikasyon and Pinar Entegre

Can any of the company-specific risk be diversified away by investing in both Turk Telekomunikasyon and Pinar Entegre 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 Turk Telekomunikasyon and Pinar Entegre into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Turk Telekomunikasyon AS and Pinar Entegre Et, you can compare the effects of market volatilities on Turk Telekomunikasyon and Pinar Entegre 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 Turk Telekomunikasyon with a short position of Pinar Entegre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Telekomunikasyon and Pinar Entegre.

Diversification Opportunities for Turk Telekomunikasyon and Pinar Entegre

-0.42

Correlation Coefficient

Turk Telekomunikasyon  Pinar Entegre

Very good diversification

The 3 months correlation between Turk and Pinar is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Turk Telekomunikasyon AS and Pinar Entegre Et in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinar Entegre Et and Turk Telekomunikasyon 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 Turk Telekomunikasyon AS are associated (or correlated) with Pinar Entegre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinar Entegre Et has no effect on the direction of Turk Telekomunikasyon i.e., Turk Telekomunikasyon and Pinar Entegre go up and down completely randomly.

Pair Corralation between Turk Telekomunikasyon and Pinar Entegre

Assuming the 90 days trading horizon Turk Telekomunikasyon AS is expected to generate 1.26 times more return on investment than Pinar Entegre. However, Turk Telekomunikasyon is 1.26 times more volatile than Pinar Entegre Et. It trades about 0.06 of its potential returns per unit of risk. Pinar Entegre Et is currently generating about -0.13 per unit of risk. If you would invest  4,566  in Turk Telekomunikasyon AS on December 27, 2024 and sell it today you would earn a total of  374.00  from holding Turk Telekomunikasyon AS or generate 8.19% return on investment over 90 days.

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

Turk Telekomunikasyon AS  vs.  Pinar Entegre Et

Turk Telekomunikasyon

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Turk Telekomunikasyon AS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turk Telekomunikasyon may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pinar Entegre Et

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pinar Entegre Et has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Turk Telekomunikasyon and Pinar Entegre

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

The idea behind Turk Telekomunikasyon AS and Pinar Entegre Et 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.