Correlation Between Turkiye Garanti and Tekfen Holding
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Tekfen 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 Tekfen 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 Tekfen Holding AS, you can compare the effects of market volatilities on Turkiye Garanti and Tekfen 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 Tekfen Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Tekfen Holding.
Diversification Opportunities for Turkiye Garanti and Tekfen Holding
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Tekfen is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Tekfen Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekfen 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 Tekfen Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekfen Holding AS has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Tekfen Holding go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Tekfen Holding
Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 0.92 times more return on investment than Tekfen Holding. However, Turkiye Garanti Bankasi is 1.08 times less risky than Tekfen Holding. It trades about 0.15 of its potential returns per unit of risk. Tekfen Holding AS is currently generating about 0.08 per unit of risk. If you would invest 3,213 in Turkiye Garanti Bankasi on August 28, 2024 and sell it today you would earn a total of 8,817 from holding Turkiye Garanti Bankasi or generate 274.42% 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. Tekfen Holding AS
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Tekfen Holding AS |
Turkiye Garanti and Tekfen Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Tekfen Holding
The main advantage of trading using opposite Turkiye Garanti and Tekfen Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Tekfen 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 Tekfen Holding will offset losses from the drop in Tekfen Holding'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 |
| Tekfen Holding vs. QNB Finans Finansal | Tekfen Holding vs. Pamel Yenilenebilir Elektrik | Tekfen Holding vs. Brisa Bridgestone Sabanci | Tekfen Holding vs. Dogus Gayrimenkul Yatirim |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |