Correlation Between CCCB Bancorp and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both CCCB Bancorp 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 CCCB Bancorp and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCCB Bancorp and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on CCCB Bancorp 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 CCCB Bancorp with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCCB Bancorp and Turkiye Garanti.
Diversification Opportunities for CCCB Bancorp and Turkiye Garanti
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CCCB and Turkiye is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding CCCB Bancorp 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 CCCB Bancorp 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 CCCB Bancorp 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 CCCB Bancorp i.e., CCCB Bancorp and Turkiye Garanti go up and down completely randomly.
Pair Corralation between CCCB Bancorp and Turkiye Garanti
Given the investment horizon of 90 days CCCB Bancorp is expected to generate 1.08 times less return on investment than Turkiye Garanti. In addition to that, CCCB Bancorp is 1.09 times more volatile than Turkiye Garanti Bankasi. It trades about 0.21 of its total potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.24 per unit of volatility. If you would invest 305.00 in Turkiye Garanti Bankasi on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Turkiye Garanti Bankasi or generate 16.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCCB Bancorp vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| CCCB Bancorp |
| Turkiye Garanti Bankasi |
CCCB Bancorp and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCCB Bancorp and Turkiye Garanti
The main advantage of trading using opposite CCCB Bancorp and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCCB Bancorp 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.| CCCB Bancorp vs. Piraeus Bank SA | CCCB Bancorp vs. Turkiye Garanti Bankasi | CCCB Bancorp vs. Delhi Bank Corp | CCCB Bancorp vs. Uwharrie Capital Corp |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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