Correlation Between Netas Telekomunikasyon and Trabzon Liman

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

By analyzing existing cross correlation between Netas Telekomunikasyon AS and Trabzon Liman Isletmeciligi, you can compare the effects of market volatilities on Netas Telekomunikasyon and Trabzon Liman 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 Netas Telekomunikasyon with a short position of Trabzon Liman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netas Telekomunikasyon and Trabzon Liman.

Diversification Opportunities for Netas Telekomunikasyon and Trabzon Liman

0.73

Correlation Coefficient

Netas Telekomunikasyon  Trabzon Liman

Poor diversification

The 3 months correlation between Netas and Trabzon is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Netas Telekomunikasyon AS and Trabzon Liman Isletmeciligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trabzon Liman Isletm and Netas Telekomunikasyon 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 Netas Telekomunikasyon AS are associated (or correlated) with Trabzon Liman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trabzon Liman Isletm has no effect on the direction of Netas Telekomunikasyon i.e., Netas Telekomunikasyon and Trabzon Liman go up and down completely randomly.

Pair Corralation between Netas Telekomunikasyon and Trabzon Liman

Assuming the 90 days trading horizon Netas Telekomunikasyon AS is expected to generate 1.18 times more return on investment than Trabzon Liman. However, Netas Telekomunikasyon is 1.18 times more volatile than Trabzon Liman Isletmeciligi. It trades about 0.02 of its potential returns per unit of risk. Trabzon Liman Isletmeciligi is currently generating about -0.03 per unit of risk. If you would invest  5,155  in Netas Telekomunikasyon AS on April 21, 2025 and sell it today you would earn a total of  75.00  from holding Netas Telekomunikasyon AS or generate 1.45% return on investment over 90 days.

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

Netas Telekomunikasyon AS  vs.  Trabzon Liman Isletmeciligi

Netas Telekomunikasyon

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Netas Telekomunikasyon AS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Netas Telekomunikasyon is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Trabzon Liman Isletm

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trabzon Liman Isletmeciligi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Trabzon Liman is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Netas Telekomunikasyon and Trabzon Liman

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

The idea behind Netas Telekomunikasyon AS and Trabzon Liman Isletmeciligi 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.