Correlation Between Turkcell Iletisim and Liberty Broadband

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

Diversification Opportunities for Turkcell Iletisim and Liberty Broadband

-0.31

Correlation Coefficient

Turkcell Iletisim  Liberty Broadband

Very good diversification

The 3 months correlation between Turkcell and Liberty is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Turkcell Iletisim Hizmetleri and Liberty Broadband Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Broadband Corp 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 Liberty Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Broadband Corp has no effect on the direction of Turkcell Iletisim i.e., Turkcell Iletisim and Liberty Broadband go up and down completely randomly.

Pair Corralation between Turkcell Iletisim and Liberty Broadband

Considering the 90-day investment horizon Turkcell Iletisim Hizmetleri is expected to under-perform the Liberty Broadband. In addition to that, Turkcell Iletisim is 2.63 times more volatile than Liberty Broadband Corp. It trades about -0.08 of its total potential returns per unit of risk. Liberty Broadband Corp is currently generating about 0.06 per unit of volatility. If you would invest  2,342  in Liberty Broadband Corp on September 4, 2024 and sell it today you would earn a total of  58.00  from holding Liberty Broadband Corp or generate 2.48% return on investment over 90 days.

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

Turkcell Iletisim Hizmetleri  vs.  Liberty Broadband Corp

Turkcell Iletisim

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkcell Iletisim Hizmetleri has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's forward-looking signals remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Liberty Broadband Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Liberty Broadband Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Liberty Broadband is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Turkcell Iletisim and Liberty Broadband

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

The idea behind Turkcell Iletisim Hizmetleri and Liberty Broadband Corp 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.

Check out your portfolio center.

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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.