Correlation Between Akbank TAS and Turkiye Halk
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Turkiye Halk 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 Halk 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 Halk Bankasi, you can compare the effects of market volatilities on Akbank TAS and Turkiye Halk 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 Halk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Turkiye Halk.
Diversification Opportunities for Akbank TAS and Turkiye Halk
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Akbank and Turkiye is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Turkiye Halk Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Halk 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 Halk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Halk Bankasi has no effect on the direction of Akbank TAS i.e., Akbank TAS and Turkiye Halk go up and down completely randomly.
Pair Corralation between Akbank TAS and Turkiye Halk
Assuming the 90 days trading horizon Akbank TAS is expected to generate 1.91 times more return on investment than Turkiye Halk. However, Akbank TAS is 1.91 times more volatile than Turkiye Halk Bankasi. It trades about 0.3 of its potential returns per unit of risk. Turkiye Halk Bankasi is currently generating about 0.3 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akbank TAS vs. Turkiye Halk Bankasi
Performance |
| Timeline |
| Akbank TAS |
| Turkiye Halk Bankasi |
Akbank TAS and Turkiye Halk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank TAS and Turkiye Halk
The main advantage of trading using opposite Akbank TAS and Turkiye Halk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Turkiye Halk 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 Halk will offset losses from the drop in Turkiye Halk'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 Halk vs. Turkiye Garanti Bankasi | Turkiye Halk vs. Turkiye Is Bankasi | Turkiye Halk vs. Turkiye Vakiflar Bankasi | Turkiye Halk vs. Akbank TAS |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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