Correlation Between Turkiye Garanti and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Coca Cola 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 Coca Cola 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 Coca Cola Icecek AS, you can compare the effects of market volatilities on Turkiye Garanti and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Coca Cola.
Diversification Opportunities for Turkiye Garanti and Coca Cola
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Turkiye and Coca is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Coca Cola Icecek AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Icecek 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola Icecek has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Coca Cola go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Coca Cola
Assuming the 90 days trading horizon Turkiye Garanti is expected to generate 1.01 times less return on investment than Coca Cola. But when comparing it to its historical volatility, Turkiye Garanti Bankasi is 1.12 times less risky than Coca Cola. It trades about 0.2 of its potential returns per unit of risk. Coca Cola Icecek AS is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 5,030 in Coca Cola Icecek AS on August 30, 2024 and sell it today you would earn a total of 535.00 from holding Coca Cola Icecek AS or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Coca Cola Icecek AS
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Coca Cola Icecek |
Turkiye Garanti and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Coca Cola
The main advantage of trading using opposite Turkiye Garanti and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| Turkiye Garanti vs. Akbank TAS | Turkiye Garanti vs. Turkish Airlines | Turkiye Garanti vs. Koc Holding AS |
| Coca Cola vs. Anadolu Efes Biracilik | Coca Cola vs. BIM Birlesik Magazalar | Coca Cola vs. TAV Havalimanlari Holding | Coca Cola vs. Turkiye Sise ve |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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