Correlation Between Turkiye Garanti and Senkron Guvenlik
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Senkron Guvenlik 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 Senkron Guvenlik 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 Senkron Guvenlik ve, you can compare the effects of market volatilities on Turkiye Garanti and Senkron Guvenlik 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 Senkron Guvenlik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Senkron Guvenlik.
Diversification Opportunities for Turkiye Garanti and Senkron Guvenlik
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Turkiye and Senkron is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Senkron Guvenlik ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senkron Guvenlik 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 Senkron Guvenlik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senkron Guvenlik has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Senkron Guvenlik go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Senkron Guvenlik
Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 0.64 times more return on investment than Senkron Guvenlik. However, Turkiye Garanti Bankasi is 1.56 times less risky than Senkron Guvenlik. It trades about 0.12 of its potential returns per unit of risk. Senkron Guvenlik ve is currently generating about 0.06 per unit of risk. If you would invest 2,419 in Turkiye Garanti Bankasi on September 4, 2024 and sell it today you would earn a total of 9,661 from holding Turkiye Garanti Bankasi or generate 399.38% 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. Senkron Guvenlik ve
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Senkron Guvenlik |
Turkiye Garanti and Senkron Guvenlik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Senkron Guvenlik
The main advantage of trading using opposite Turkiye Garanti and Senkron Guvenlik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Senkron Guvenlik 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 Senkron Guvenlik will offset losses from the drop in Senkron Guvenlik'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 |
| Senkron Guvenlik vs. Politeknik Metal Sanayi | Senkron Guvenlik vs. Silverline Endustri ve | Senkron Guvenlik vs. E Data Teknoloji Pazarlama | Senkron Guvenlik vs. Akbank TAS |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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