Correlation Between Garanti Faktoring and Seker Finansal
Can any of the company-specific risk be diversified away by investing in both Garanti Faktoring and Seker Finansal 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 Garanti Faktoring and Seker Finansal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garanti Faktoring AS and Seker Finansal Kiralama, you can compare the effects of market volatilities on Garanti Faktoring and Seker Finansal 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 Garanti Faktoring with a short position of Seker Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garanti Faktoring and Seker Finansal.
Diversification Opportunities for Garanti Faktoring and Seker Finansal
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Garanti and Seker is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Garanti Faktoring AS and Seker Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seker Finansal Kiralama and Garanti Faktoring 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 Garanti Faktoring AS are associated (or correlated) with Seker Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seker Finansal Kiralama has no effect on the direction of Garanti Faktoring i.e., Garanti Faktoring and Seker Finansal go up and down completely randomly.
Pair Corralation between Garanti Faktoring and Seker Finansal
Assuming the 90 days trading horizon Garanti Faktoring AS is expected to generate 0.88 times more return on investment than Seker Finansal. However, Garanti Faktoring AS is 1.14 times less risky than Seker Finansal. It trades about 0.06 of its potential returns per unit of risk. Seker Finansal Kiralama is currently generating about 0.03 per unit of risk. If you would invest 1,940 in Garanti Faktoring AS on September 1, 2024 and sell it today you would earn a total of 33.00 from holding Garanti Faktoring AS or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Garanti Faktoring AS vs. Seker Finansal Kiralama
Performance |
| Timeline |
| Garanti Faktoring |
| Seker Finansal Kiralama |
Garanti Faktoring and Seker Finansal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garanti Faktoring and Seker Finansal
The main advantage of trading using opposite Garanti Faktoring and Seker Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garanti Faktoring position performs unexpectedly, Seker Finansal 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 Seker Finansal will offset losses from the drop in Seker Finansal's long position.| Garanti Faktoring vs. Silverline Endustri ve | Garanti Faktoring vs. Trabzonspor Sportif Yatirim | Garanti Faktoring vs. Akcansa Cimento Sanayi | Garanti Faktoring vs. Sodas Sodyum Sanayi |
| Seker Finansal vs. Cuhadaroglu Metal Sanayi | Seker Finansal vs. Akcansa Cimento Sanayi | Seker Finansal vs. Borlease Otomotiv AS | Seker Finansal vs. Qnb Finansbank AS |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |