Correlation Between Turkiye Garanti and Koc Holding
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Koc Holding 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 Koc Holding 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 Koc Holding AS, you can compare the effects of market volatilities on Turkiye Garanti and Koc Holding 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 Koc Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Koc Holding.
Diversification Opportunities for Turkiye Garanti and Koc Holding
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Koc is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Koc Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koc Holding AS 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 Koc Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koc Holding AS has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Koc Holding go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Koc Holding
Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 1.18 times more return on investment than Koc Holding. However, Turkiye Garanti is 1.18 times more volatile than Koc Holding AS. It trades about 0.13 of its potential returns per unit of risk. Koc Holding AS is currently generating about 0.1 per unit of risk. If you would invest 2,221 in Turkiye Garanti Bankasi on August 28, 2024 and sell it today you would earn a total of 9,809 from holding Turkiye Garanti Bankasi or generate 441.65% 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. Koc Holding AS
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Koc Holding AS |
Turkiye Garanti and Koc Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Koc Holding
The main advantage of trading using opposite Turkiye Garanti and Koc Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Koc Holding 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 Koc Holding will offset losses from the drop in Koc Holding'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 |
| Koc Holding vs. Haci Omer Sabanci | Koc Holding vs. Turkiye Sise ve | Koc Holding vs. Turkiye Petrol Rafinerileri | Koc Holding vs. Turkiye Garanti Bankasi |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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