Correlation Between Turkcell Iletisim and Is Finansal

Can any of the company-specific risk be diversified away by investing in both Turkcell Iletisim 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 Turkcell Iletisim and Is Finansal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Turkcell Iletisim Hizmetleri and Is Finansal Kiralama, you can compare the effects of market volatilities on Turkcell Iletisim 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 Turkcell Iletisim with a short position of Is Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkcell Iletisim and Is Finansal.

Diversification Opportunities for Turkcell Iletisim and Is Finansal

0.76

Correlation Coefficient

Turkcell Iletisim  Is Finansal

Poor diversification

The 3 months correlation between Turkcell and ISFIN is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Turkcell Iletisim Hizmetleri 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 Turkcell Iletisim 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 Turkcell Iletisim Hizmetleri 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 Turkcell Iletisim i.e., Turkcell Iletisim and Is Finansal go up and down completely randomly.

Pair Corralation between Turkcell Iletisim and Is Finansal

Assuming the 90 days trading horizon Turkcell Iletisim is expected to generate 1.52 times less return on investment than Is Finansal. But when comparing it to its historical volatility, Turkcell Iletisim Hizmetleri is 1.84 times less risky than Is Finansal. It trades about 0.53 of its potential returns per unit of risk. Is Finansal Kiralama is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest  1,174  in Is Finansal Kiralama on February 21, 2024 and sell it today you would earn a total of  227.00  from holding Is Finansal Kiralama or generate 19.34% return on investment over 90 days.

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

Turkcell Iletisim Hizmetleri  vs.  Is Finansal Kiralama

Turkcell Iletisim

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Turkcell Iletisim Hizmetleri are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent essential indicators, Turkcell Iletisim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Is Finansal Kiralama

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Is Finansal Kiralama are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Is Finansal demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Turkcell Iletisim and Is Finansal

The main advantage of trading using opposite Turkcell Iletisim and Is Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkcell Iletisim 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 Turkcell Iletisim Hizmetleri 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.