Correlation Between Turkiye Garanti and Akis Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Akis Gayrimenkul 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 Turkiye Garanti and Akis Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Garanti Bankasi and Akis Gayrimenkul Yatirim, you can compare the effects of market volatilities on Turkiye Garanti and Akis Gayrimenkul 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 Turkiye Garanti with a short position of Akis Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Akis Gayrimenkul.
Diversification Opportunities for Turkiye Garanti and Akis Gayrimenkul
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and Akis is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Akis Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akis Gayrimenkul Yatirim and Turkiye Garanti 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 Turkiye Garanti Bankasi are associated (or correlated) with Akis Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akis Gayrimenkul Yatirim has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Akis Gayrimenkul go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Akis Gayrimenkul
Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 0.87 times more return on investment than Akis Gayrimenkul. However, Turkiye Garanti Bankasi is 1.14 times less risky than Akis Gayrimenkul. It trades about 0.27 of its potential returns per unit of risk. Akis Gayrimenkul Yatirim is currently generating about 0.2 per unit of risk. If you would invest 11,180 in Turkiye Garanti Bankasi on September 13, 2024 and sell it today you would earn a total of 1,420 from holding Turkiye Garanti Bankasi or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Akis Gayrimenkul Yatirim
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Akis Gayrimenkul Yatirim |
Turkiye Garanti and Akis Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Akis Gayrimenkul
The main advantage of trading using opposite Turkiye Garanti and Akis Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Akis Gayrimenkul 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 Akis Gayrimenkul will offset losses from the drop in Akis Gayrimenkul's long position.| Turkiye Garanti vs. Pamel Yenilenebilir Elektrik | Turkiye Garanti vs. Bosch Fren Sistemleri | Turkiye Garanti vs. Marka Yatirim Holding | Turkiye Garanti vs. Dogus Gayrimenkul Yatirim |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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