Correlation Between Turkiye Garanti and Ege Endustri
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Ege Endustri 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 Ege Endustri 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 Ege Endustri ve, you can compare the effects of market volatilities on Turkiye Garanti and Ege Endustri 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 Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Ege Endustri.
Diversification Opportunities for Turkiye Garanti and Ege Endustri
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Ege is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri ve 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 Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Ege Endustri go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Ege Endustri
Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 0.86 times more return on investment than Ege Endustri. However, Turkiye Garanti Bankasi is 1.17 times less risky than Ege Endustri. It trades about 0.12 of its potential returns per unit of risk. Ege Endustri ve is currently generating about 0.04 per unit of risk. If you would invest 2,666 in Turkiye Garanti Bankasi on August 26, 2024 and sell it today you would earn a total of 9,284 from holding Turkiye Garanti Bankasi or generate 348.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Ege Endustri ve
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Ege Endustri ve |
Turkiye Garanti and Ege Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Ege Endustri
The main advantage of trading using opposite Turkiye Garanti and Ege Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Ege Endustri 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 Ege Endustri will offset losses from the drop in Ege Endustri's long position.| Turkiye Garanti vs. Turkiye Is Bankasi | Turkiye Garanti vs. Turkiye Is Bankasi | Turkiye Garanti vs. Haci Omer Sabanci | Turkiye Garanti vs. Turkiye Halk Bankasi |
| Ege Endustri vs. Ford Otomotiv Sanayi | Ege Endustri vs. Tofas Turk Otomobil | Ege Endustri vs. Hektas Ticaret TAS | Ege Endustri vs. Eregli Demir 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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