Correlation Between Koc Holding and Turkcell Iletisim

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

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

Diversification Opportunities for Koc Holding and Turkcell Iletisim

0.68

Correlation Coefficient

Koc Holding  Turkcell Iletisim

Poor diversification

The 3 months correlation between Koc and Turkcell is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Turkcell Iletisim Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkcell Iletisim and Koc Holding 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 Koc Holding AS 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 Koc Holding i.e., Koc Holding and Turkcell Iletisim go up and down completely randomly.

Pair Corralation between Koc Holding and Turkcell Iletisim

Assuming the 90 days trading horizon Koc Holding AS is expected to generate 1.1 times more return on investment than Turkcell Iletisim. However, Koc Holding is 1.1 times more volatile than Turkcell Iletisim Hizmetleri. It trades about 0.1 of its potential returns per unit of risk. Turkcell Iletisim Hizmetleri is currently generating about 0.05 per unit of risk. If you would invest  14,520  in Koc Holding AS on April 22, 2025 and sell it today you would earn a total of  2,120  from holding Koc Holding AS or generate 14.6% return on investment over 90 days.

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

Koc Holding AS  vs.  Turkcell Iletisim Hizmetleri

Koc Holding AS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Koc Holding AS are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Koc Holding demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Turkcell Iletisim

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Turkcell Iletisim Hizmetleri are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turkcell Iletisim may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Koc Holding and Turkcell Iletisim

The main advantage of trading using opposite Koc Holding and Turkcell Iletisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding 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 Koc Holding AS 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.