Correlation Between Desa Deri and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Desa Deri 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 Desa Deri and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Desa Deri Sanayi and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Desa Deri 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 Desa Deri with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Desa Deri and Turkiye Garanti.
Diversification Opportunities for Desa Deri and Turkiye Garanti
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Desa and Turkiye is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Desa Deri Sanayi 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 Desa Deri 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 Desa Deri Sanayi 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 Desa Deri i.e., Desa Deri and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Desa Deri and Turkiye Garanti
Assuming the 90 days trading horizon Desa Deri Sanayi is expected to generate 5.71 times more return on investment than Turkiye Garanti. However, Desa Deri is 5.71 times more volatile than Turkiye Garanti Bankasi. It trades about 0.04 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.12 per unit of risk. If you would invest 1,334 in Desa Deri Sanayi on September 3, 2024 and sell it today you would earn a total of 758.00 from holding Desa Deri Sanayi or generate 56.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Desa Deri Sanayi vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Desa Deri Sanayi |
| Turkiye Garanti Bankasi |
Desa Deri and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Desa Deri and Turkiye Garanti
The main advantage of trading using opposite Desa Deri and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Desa Deri 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.| Desa Deri vs. Bms Birlesik Metal | Desa Deri vs. Qnb Finansbank AS | Desa Deri vs. Borlease Otomotiv AS | Desa Deri vs. Koza Anadolu Metal |
| Turkiye Garanti vs. Desa Deri Sanayi | Turkiye Garanti vs. Tumosan Motor ve | Turkiye Garanti vs. Ihlas Gazetecilik AS | Turkiye Garanti vs. Kuyas Yatirim AS |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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