Correlation Between Caixabank and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Caixabank 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 Caixabank and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caixabank SA ADR and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Caixabank 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 Caixabank with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caixabank and Turkiye Garanti.
Diversification Opportunities for Caixabank and Turkiye Garanti
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Caixabank and Turkiye is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Caixabank SA ADR 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 Caixabank 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 Caixabank SA ADR 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 Caixabank i.e., Caixabank and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Caixabank and Turkiye Garanti
If you would invest 115.00 in Caixabank SA ADR on September 1, 2024 and sell it today you would earn a total of 63.00 from holding Caixabank SA ADR or generate 54.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.65% |
| Values | Daily Returns |
Caixabank SA ADR vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Caixabank SA ADR |
| Turkiye Garanti Bankasi |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Caixabank and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caixabank and Turkiye Garanti
The main advantage of trading using opposite Caixabank and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caixabank 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.| Caixabank vs. Permanent TSB Group | Caixabank vs. Bank of Botetourt | Caixabank vs. Cashmere Valley Bank | Caixabank vs. Oak Valley Bancorp |
| Turkiye Garanti vs. Permanent TSB Group | Turkiye Garanti vs. Bank of Botetourt | Turkiye Garanti vs. Caixabank SA ADR | Turkiye Garanti vs. Hang Seng Bank |
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 CEOs Directory module to screen CEOs from public companies around the world.
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