Correlation Between Turkiye Garanti and Halk Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Halk 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 Halk 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 Halk Gayrimenkul Yatirim, you can compare the effects of market volatilities on Turkiye Garanti and Halk 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 Halk Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Halk Gayrimenkul.
Diversification Opportunities for Turkiye Garanti and Halk Gayrimenkul
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Halk is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Halk Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halk 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 Halk Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halk Gayrimenkul Yatirim has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Halk Gayrimenkul go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Halk Gayrimenkul
Assuming the 90 days trading horizon Turkiye Garanti is expected to generate 1.04 times less return on investment than Halk Gayrimenkul. In addition to that, Turkiye Garanti is 1.02 times more volatile than Halk Gayrimenkul Yatirim. It trades about 0.25 of its total potential returns per unit of risk. Halk Gayrimenkul Yatirim is currently generating about 0.26 per unit of volatility. If you would invest 231.00 in Halk Gayrimenkul Yatirim on September 2, 2024 and sell it today you would earn a total of 34.00 from holding Halk Gayrimenkul Yatirim or generate 14.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Halk Gayrimenkul Yatirim
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Halk Gayrimenkul Yatirim |
Turkiye Garanti and Halk Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Halk Gayrimenkul
The main advantage of trading using opposite Turkiye Garanti and Halk Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Halk 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 Halk Gayrimenkul will offset losses from the drop in Halk Gayrimenkul's long position.| Turkiye Garanti vs. Akbank TAS | Turkiye Garanti vs. Turkiye Is Bankasi | Turkiye Garanti vs. Yapi ve Kredi | Turkiye Garanti vs. Turkish Airlines |
| Halk Gayrimenkul vs. Sekerbank TAS | Halk Gayrimenkul vs. Gentas Genel Metal | Halk Gayrimenkul vs. Koza Anadolu Metal | Halk Gayrimenkul vs. MEGA METAL |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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