Correlation Between Turkcell Iletisim and Turk Telekomunikasyon

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

Diversification Opportunities for Turkcell Iletisim and Turk Telekomunikasyon

0.85
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Turkcell and Turk is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Turkcell Iletisim Hizmetleri and Turk Telekomunikasyon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Telekomunikasyon 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 Turk Telekomunikasyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Telekomunikasyon has no effect on the direction of Turkcell Iletisim i.e., Turkcell Iletisim and Turk Telekomunikasyon go up and down completely randomly.

Pair Corralation between Turkcell Iletisim and Turk Telekomunikasyon

Assuming the 90 days trading horizon Turkcell Iletisim is expected to generate 1.85 times less return on investment than Turk Telekomunikasyon. But when comparing it to its historical volatility, Turkcell Iletisim Hizmetleri is 1.05 times less risky than Turk Telekomunikasyon. It trades about 0.03 of its potential returns per unit of risk. Turk Telekomunikasyon AS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  5,300  in Turk Telekomunikasyon AS on April 21, 2025 and sell it today you would earn a total of  385.00  from holding Turk Telekomunikasyon AS or generate 7.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Turkcell Iletisim Hizmetleri  vs.  Turk Telekomunikasyon AS

 Performance 
       Timeline  
Turkcell Iletisim 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
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.
Turk Telekomunikasyon 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Turk Telekomunikasyon AS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turk Telekomunikasyon may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Turkcell Iletisim and Turk Telekomunikasyon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Turkcell Iletisim and Turk Telekomunikasyon

The main advantage of trading using opposite Turkcell Iletisim and Turk Telekomunikasyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkcell Iletisim position performs unexpectedly, Turk Telekomunikasyon 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 Turk Telekomunikasyon will offset losses from the drop in Turk Telekomunikasyon's long position.
The idea behind Turkcell Iletisim Hizmetleri and Turk Telekomunikasyon AS 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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