Correlation Between Turkiye Garanti and Mazhar Zorlu
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Mazhar Zorlu 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 Mazhar Zorlu 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 Mazhar Zorlu Holding, you can compare the effects of market volatilities on Turkiye Garanti and Mazhar Zorlu 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 Mazhar Zorlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Mazhar Zorlu.
Diversification Opportunities for Turkiye Garanti and Mazhar Zorlu
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and Mazhar is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Mazhar Zorlu Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mazhar Zorlu Holding 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 Mazhar Zorlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mazhar Zorlu Holding has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Mazhar Zorlu go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Mazhar Zorlu
Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 0.7 times more return on investment than Mazhar Zorlu. However, Turkiye Garanti Bankasi is 1.42 times less risky than Mazhar Zorlu. It trades about 0.33 of its potential returns per unit of risk. Mazhar Zorlu Holding is currently generating about 0.19 per unit of risk. If you would invest 11,180 in Turkiye Garanti Bankasi on September 12, 2024 and sell it today you would earn a total of 1,710 from holding Turkiye Garanti Bankasi or generate 15.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Mazhar Zorlu Holding
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Mazhar Zorlu Holding |
Turkiye Garanti and Mazhar Zorlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Mazhar Zorlu
The main advantage of trading using opposite Turkiye Garanti and Mazhar Zorlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Mazhar Zorlu 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 Mazhar Zorlu will offset losses from the drop in Mazhar Zorlu'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 |
| Mazhar Zorlu vs. Koza Anadolu Metal | Mazhar Zorlu vs. Cuhadaroglu Metal Sanayi | Mazhar Zorlu vs. CEO Event Medya | Mazhar Zorlu vs. Silverline Endustri 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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