Correlation Between Turkiye Garanti and Turkcell Iletisim

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

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

Diversification Opportunities for Turkiye Garanti and Turkcell Iletisim

0.54

Correlation Coefficient

Turkiye Garanti  Turkcell Iletisim

Very weak diversification

The 3 months correlation between Turkiye and Turkcell is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Turkcell Iletisim Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkcell Iletisim and Turkiye Garanti 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 Turkiye Garanti Bankasi are associated (or correlated) with Turkcell Iletisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkcell Iletisim has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Turkcell Iletisim go up and down completely randomly.

Pair Corralation between Turkiye Garanti and Turkcell Iletisim

Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 1.13 times more return on investment than Turkcell Iletisim. However, Turkiye Garanti is 1.13 times more volatile than Turkcell Iletisim Hizmetleri. It trades about 0.2 of its potential returns per unit of risk. Turkcell Iletisim Hizmetleri is currently generating about 0.03 per unit of risk. If you would invest  10,470  in Turkiye Garanti Bankasi on April 24, 2025 and sell it today you would earn a total of  3,470  from holding Turkiye Garanti Bankasi or generate 33.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

Turkiye Garanti Bankasi  vs.  Turkcell Iletisim Hizmetleri

Turkiye Garanti Bankasi

Risk-Adjusted Performance

Good

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

Turkcell Iletisim

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turkcell Iletisim Hizmetleri are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Turkcell Iletisim is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Turkiye Garanti and Turkcell Iletisim

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

The idea behind Turkiye Garanti Bankasi and Turkcell Iletisim Hizmetleri 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.