Correlation Between Turkiye Garanti and Flap Kongre

Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Flap Kongre 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 Turkiye Garanti and Flap Kongre into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Turkiye Garanti Bankasi and Flap Kongre Toplanti, you can compare the effects of market volatilities on Turkiye Garanti and Flap Kongre 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 Turkiye Garanti with a short position of Flap Kongre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Flap Kongre.

Diversification Opportunities for Turkiye Garanti and Flap Kongre

-0.72

Correlation Coefficient

Turkiye Garanti  Flap Kongre

Pay attention - limited upside

The 3 months correlation between Turkiye and Flap is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Flap Kongre Toplanti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flap Kongre Toplanti and Turkiye Garanti 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 Turkiye Garanti Bankasi are associated (or correlated) with Flap Kongre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flap Kongre Toplanti has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Flap Kongre go up and down completely randomly.

Pair Corralation between Turkiye Garanti and Flap Kongre

Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 0.69 times more return on investment than Flap Kongre. However, Turkiye Garanti Bankasi is 1.45 times less risky than Flap Kongre. It trades about 0.3 of its potential returns per unit of risk. Flap Kongre Toplanti is currently generating about 0.04 per unit of risk. If you would invest  7,415  in Turkiye Garanti Bankasi on February 7, 2024 and sell it today you would earn a total of  1,015  from holding Turkiye Garanti Bankasi or generate 13.69% return on investment over 90 days.

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

Turkiye Garanti Bankasi  vs.  Flap Kongre Toplanti

Turkiye Garanti Bankasi

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Garanti Bankasi are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Turkiye Garanti demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Flap Kongre Toplanti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flap Kongre Toplanti has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Turkiye Garanti and Flap Kongre

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

The idea behind Turkiye Garanti Bankasi and Flap Kongre Toplanti 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.