Correlation Between Turkcell Iletisim and TIM Participacoes

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

Diversification Opportunities for Turkcell Iletisim and TIM Participacoes

-0.25

Correlation Coefficient

Turkcell Iletisim  TIM Participacoes

Very good diversification

The 3 months correlation between Turkcell and TIM is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Turkcell Iletisim Hizmetleri and TIM Participacoes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIM Participacoes 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 TIM Participacoes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIM Participacoes has no effect on the direction of Turkcell Iletisim i.e., Turkcell Iletisim and TIM Participacoes go up and down completely randomly.

Pair Corralation between Turkcell Iletisim and TIM Participacoes

Considering the 90-day investment horizon Turkcell Iletisim Hizmetleri is expected to under-perform the TIM Participacoes. In addition to that, Turkcell Iletisim is 1.2 times more volatile than TIM Participacoes SA. It trades about -0.04 of its total potential returns per unit of risk. TIM Participacoes SA is currently generating about 0.19 per unit of volatility. If you would invest  1,709  in TIM Participacoes SA on May 19, 2025 and sell it today you would earn a total of  374.00  from holding TIM Participacoes SA or generate 21.88% 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.  TIM Participacoes SA

Turkcell Iletisim

Risk-Adjusted Performance

Weakest

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 rather sound forward-looking signals, Turkcell Iletisim is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

TIM Participacoes

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TIM Participacoes SA are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain primary indicators, TIM Participacoes sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Turkcell Iletisim and TIM Participacoes

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

The idea behind Turkcell Iletisim Hizmetleri and TIM Participacoes SA 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.