Correlation Between Eregli Demir and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Eregli Demir 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 Eregli Demir and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eregli Demir ve and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Eregli Demir 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 Eregli Demir with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Turkiye Garanti.
Diversification Opportunities for Eregli Demir and Turkiye Garanti
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eregli and Turkiye is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve 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 Eregli Demir 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 Eregli Demir ve 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 Eregli Demir i.e., Eregli Demir and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Eregli Demir and Turkiye Garanti
Assuming the 90 days trading horizon Eregli Demir is expected to generate 2.41 times less return on investment than Turkiye Garanti. But when comparing it to its historical volatility, Eregli Demir ve is 1.16 times less risky than Turkiye Garanti. It trades about 0.03 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 10,430 in Turkiye Garanti Bankasi on September 2, 2024 and sell it today you would earn a total of 1,620 from holding Turkiye Garanti Bankasi or generate 15.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eregli Demir ve vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Eregli Demir ve |
| Turkiye Garanti Bankasi |
Eregli Demir and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Turkiye Garanti
The main advantage of trading using opposite Eregli Demir and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir 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.| Eregli Demir vs. Turkiye Sise ve | Eregli Demir vs. Turkiye Petrol Rafinerileri | Eregli Demir vs. Ford Otomotiv Sanayi | Eregli Demir vs. Petkim Petrokimya Holding |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |