Correlation Between Turkiye Halk and Turkiye Sinai
Can any of the company-specific risk be diversified away by investing in both Turkiye Halk and Turkiye Sinai 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 Halk and Turkiye Sinai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Halk Bankasi and Turkiye Sinai Kalkinma, you can compare the effects of market volatilities on Turkiye Halk and Turkiye Sinai 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 Halk with a short position of Turkiye Sinai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Halk and Turkiye Sinai.
Diversification Opportunities for Turkiye Halk and Turkiye Sinai
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Turkiye and Turkiye is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Halk Bankasi and Turkiye Sinai Kalkinma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Sinai Kalkinma and Turkiye Halk 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 Halk Bankasi are associated (or correlated) with Turkiye Sinai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Sinai Kalkinma has no effect on the direction of Turkiye Halk i.e., Turkiye Halk and Turkiye Sinai go up and down completely randomly.
Pair Corralation between Turkiye Halk and Turkiye Sinai
Assuming the 90 days trading horizon Turkiye Halk Bankasi is expected to generate 0.88 times more return on investment than Turkiye Sinai. However, Turkiye Halk Bankasi is 1.14 times less risky than Turkiye Sinai. It trades about 0.24 of its potential returns per unit of risk. Turkiye Sinai Kalkinma is currently generating about 0.1 per unit of risk. If you would invest 1,482 in Turkiye Halk Bankasi on August 31, 2024 and sell it today you would earn a total of 138.00 from holding Turkiye Halk Bankasi or generate 9.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Halk Bankasi vs. Turkiye Sinai Kalkinma
Performance |
| Timeline |
| Turkiye Halk Bankasi |
| Turkiye Sinai Kalkinma |
Turkiye Halk and Turkiye Sinai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Halk and Turkiye Sinai
The main advantage of trading using opposite Turkiye Halk and Turkiye Sinai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Halk position performs unexpectedly, Turkiye Sinai 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 Turkiye Sinai will offset losses from the drop in Turkiye Sinai's long position.| Turkiye Halk vs. Turkiye Garanti Bankasi | Turkiye Halk vs. Turkiye Is Bankasi | Turkiye Halk vs. Turkiye Vakiflar Bankasi | Turkiye Halk vs. Akbank TAS |
| Turkiye Sinai vs. Turkiye Garanti Bankasi | Turkiye Sinai vs. Yapi ve Kredi | Turkiye Sinai vs. Turkiye Is Bankasi | Turkiye Sinai vs. Koc Holding 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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