Correlation Between Turkiye Garanti and Turkiye Is

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

Diversification Opportunities for Turkiye Garanti and Turkiye Is

0.7

Correlation Coefficient

Turkiye Garanti  Turkiye Is

Poor diversification

The 3 months correlation between Turkiye and Turkiye is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Turkiye Is Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Is Bankasi 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 Turkiye Is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Is Bankasi has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Turkiye Is go up and down completely randomly.

Pair Corralation between Turkiye Garanti and Turkiye Is

Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 0.95 times more return on investment than Turkiye Is. However, Turkiye Garanti Bankasi is 1.05 times less risky than Turkiye Is. It trades about 0.05 of its potential returns per unit of risk. Turkiye Is Bankasi is currently generating about 0.02 per unit of risk. If you would invest  10,900  in Turkiye Garanti Bankasi on August 23, 2024 and sell it today you would earn a total of  570.00  from holding Turkiye Garanti Bankasi or generate 5.23% return on investment over 90 days.

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

Turkiye Garanti Bankasi  vs.  Turkiye Is Bankasi

Turkiye Garanti Bankasi

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Garanti Bankasi are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turkiye Garanti may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Turkiye Is Bankasi

Risk-Adjusted Performance

1 of 100

Very Weak

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

Pair Trading with Turkiye Garanti and Turkiye Is

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

The idea behind Turkiye Garanti Bankasi and Turkiye Is Bankasi 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.