Correlation Between Akbank Turk and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Akbank Turk 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 Turk 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 Turk Anonim and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Akbank Turk 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 Turk with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank Turk and Turkiye Garanti.
Diversification Opportunities for Akbank Turk and Turkiye Garanti
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akbank and Turkiye is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Akbank Turk Anonim 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 Turk 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 Turk Anonim 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 Turk i.e., Akbank Turk and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Akbank Turk and Turkiye Garanti
Assuming the 90 days horizon Akbank Turk is expected to generate 1.38 times less return on investment than Turkiye Garanti. But when comparing it to its historical volatility, Akbank Turk Anonim is 1.12 times less risky than Turkiye Garanti. It trades about 0.07 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 118.00 in Turkiye Garanti Bankasi on September 1, 2024 and sell it today you would earn a total of 237.00 from holding Turkiye Garanti Bankasi or generate 200.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.91% |
| Values | Daily Returns |
Akbank Turk Anonim vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Akbank Turk Anonim |
| Turkiye Garanti Bankasi |
Akbank Turk and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank Turk and Turkiye Garanti
The main advantage of trading using opposite Akbank Turk and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank Turk 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 Turk vs. Commercial International Bank | Akbank Turk vs. Kasikornbank Public Co | Akbank Turk vs. PT Bank Central | Akbank Turk vs. PT Bank Rakyat |
| Turkiye Garanti vs. Kasikornbank Public Co | Turkiye Garanti vs. Hang Seng Bank | Turkiye Garanti vs. PT Bank Rakyat | Turkiye Garanti vs. Delhi Bank Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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