Correlation Between Commercial International and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Commercial International 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 Commercial International and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commercial International Bank and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Commercial International 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 Commercial International with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial International and Turkiye Garanti.
Diversification Opportunities for Commercial International and Turkiye Garanti
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Commercial and Turkiye is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Commercial International Bank 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 Commercial International 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 Commercial International Bank 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 Commercial International i.e., Commercial International and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Commercial International and Turkiye Garanti
Assuming the 90 days horizon Commercial International is expected to generate 1.95 times less return on investment than Turkiye Garanti. But when comparing it to its historical volatility, Commercial International Bank is 1.54 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 0.08 of returns per unit of risk over similar time horizon. If you would invest 196.00 in Turkiye Garanti Bankasi on August 28, 2024 and sell it today you would earn a total of 129.00 from holding Turkiye Garanti Bankasi or generate 65.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
Commercial International Bank vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Commercial International |
| Turkiye Garanti Bankasi |
Commercial International and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial International and Turkiye Garanti
The main advantage of trading using opposite Commercial International and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial International 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.| Commercial International vs. Bank Mandiri Persero | Commercial International vs. Turkiye Garanti Bankasi | Commercial International vs. BOC Hong Kong | Commercial International vs. Hang Seng Bank |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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