Correlation Between Turkcell Iletisim and Altice USA

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

Diversification Opportunities for Turkcell Iletisim and Altice USA

-0.51

Correlation Coefficient

Turkcell Iletisim  Altice USA

Excellent diversification

The 3 months correlation between Turkcell and Altice is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Turkcell Iletisim Hizmetleri and Altice USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altice USA 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 Altice USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altice USA has no effect on the direction of Turkcell Iletisim i.e., Turkcell Iletisim and Altice USA go up and down completely randomly.

Pair Corralation between Turkcell Iletisim and Altice USA

Considering the 90-day investment horizon Turkcell Iletisim is expected to generate 1.45 times less return on investment than Altice USA. But when comparing it to its historical volatility, Turkcell Iletisim Hizmetleri is 1.79 times less risky than Altice USA. It trades about 0.45 of its potential returns per unit of risk. Altice USA is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  203.00  in Altice USA on March 2, 2024 and sell it today you would earn a total of  58.00  from holding Altice USA or generate 28.57% return on investment over 90 days.

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

Turkcell Iletisim Hizmetleri  vs.  Altice USA

Turkcell Iletisim

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Turkcell Iletisim Hizmetleri are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal forward-looking signals, Turkcell Iletisim exhibited solid returns over the last few months and may actually be approaching a breakup point.

Altice USA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Altice USA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Altice USA is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Turkcell Iletisim and Altice USA

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

The idea behind Turkcell Iletisim Hizmetleri and Altice USA 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.