Correlation Between Alarko Gayrimenkul and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Alarko Gayrimenkul 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 Alarko Gayrimenkul and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alarko Gayrimenkul Yatirim and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Alarko Gayrimenkul 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 Alarko Gayrimenkul with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alarko Gayrimenkul and Turkiye Garanti.
Diversification Opportunities for Alarko Gayrimenkul and Turkiye Garanti
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alarko and Turkiye is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Alarko Gayrimenkul Yatirim 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 Alarko Gayrimenkul 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 Alarko Gayrimenkul Yatirim 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 Alarko Gayrimenkul i.e., Alarko Gayrimenkul and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Alarko Gayrimenkul and Turkiye Garanti
Assuming the 90 days trading horizon Alarko Gayrimenkul is expected to generate 1.18 times less return on investment than Turkiye Garanti. But when comparing it to its historical volatility, Alarko Gayrimenkul Yatirim is 1.08 times less risky than Turkiye Garanti. It trades about 0.21 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 11,350 in Turkiye Garanti Bankasi on September 14, 2024 and sell it today you would earn a total of 1,230 from holding Turkiye Garanti Bankasi or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alarko Gayrimenkul Yatirim vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Alarko Gayrimenkul |
| Turkiye Garanti Bankasi |
Alarko Gayrimenkul and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alarko Gayrimenkul and Turkiye Garanti
The main advantage of trading using opposite Alarko Gayrimenkul and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alarko Gayrimenkul 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.| Alarko Gayrimenkul vs. Turkiye Garanti Bankasi | Alarko Gayrimenkul vs. Turkiye Is Bankasi | Alarko Gayrimenkul vs. Turkiye Is Bankasi | Alarko Gayrimenkul vs. Akbank TAS |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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