Correlation Between Akbank TAS and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Turkiye Garanti 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 Akbank TAS and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Akbank TAS and Turkiye Garanti 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 Akbank TAS with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Turkiye Garanti.
Diversification Opportunities for Akbank TAS and Turkiye Garanti
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akbank and Turkiye is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Turkiye Garanti Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Garanti Bankasi and Akbank TAS 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 Akbank TAS are associated (or correlated) with Turkiye Garanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Garanti Bankasi has no effect on the direction of Akbank TAS i.e., Akbank TAS and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Akbank TAS and Turkiye Garanti
Assuming the 90 days trading horizon Akbank TAS is expected to generate 1.24 times more return on investment than Turkiye Garanti. However, Akbank TAS is 1.24 times more volatile than Turkiye Garanti Bankasi. It trades about 0.3 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.13 per unit of risk. If you would invest 4,968 in Akbank TAS on August 25, 2024 and sell it today you would earn a total of 1,092 from holding Akbank TAS or generate 21.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akbank TAS vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Akbank TAS |
| Turkiye Garanti Bankasi |
Akbank TAS and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank TAS and Turkiye Garanti
The main advantage of trading using opposite Akbank TAS and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Turkiye Garanti 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 Garanti will offset losses from the drop in Turkiye Garanti's long position.| Akbank TAS vs. Turkiye Garanti Bankasi | Akbank TAS vs. Yapi ve Kredi | Akbank TAS vs. Turkiye Is Bankasi | Akbank TAS vs. Koc Holding AS |
| Turkiye Garanti vs. Akbank TAS | Turkiye Garanti vs. Turkiye Is Bankasi | Turkiye Garanti vs. Yapi ve Kredi | Turkiye Garanti vs. Turkish Airlines |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |