Correlation Between Turkiye Halk and Turkiye Sinai

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

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

Diversification Opportunities for Turkiye Halk and Turkiye Sinai

0.93

Correlation Coefficient

Turkiye Halk  Turkiye Sinai

Almost no diversification

The 3 months correlation between Turkiye and Turkiye is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Halk Bankasi and Turkiye Sinai Kalkinma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Sinai Kalkinma and Turkiye Halk 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 Halk Bankasi are associated (or correlated) with Turkiye Sinai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Sinai Kalkinma has no effect on the direction of Turkiye Halk i.e., Turkiye Halk and Turkiye Sinai go up and down completely randomly.

Pair Corralation between Turkiye Halk and Turkiye Sinai

Assuming the 90 days trading horizon Turkiye Halk is expected to generate 1.02 times less return on investment than Turkiye Sinai. But when comparing it to its historical volatility, Turkiye Halk Bankasi is 1.0 times less risky than Turkiye Sinai. It trades about 0.18 of its potential returns per unit of risk. Turkiye Sinai Kalkinma is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,080  in Turkiye Sinai Kalkinma on April 23, 2025 and sell it today you would earn a total of  331.00  from holding Turkiye Sinai Kalkinma or generate 30.65% return on investment over 90 days.

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

Turkiye Halk Bankasi  vs.  Turkiye Sinai Kalkinma

Turkiye Halk Bankasi

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Halk Bankasi are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turkiye Halk demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Turkiye Sinai Kalkinma

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Sinai Kalkinma are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Turkiye Sinai unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Turkiye Halk and Turkiye Sinai

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

The idea behind Turkiye Halk Bankasi and Turkiye Sinai Kalkinma 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.