Correlation Between Turkiye Halk and Vakif Finansal
Can any of the company-specific risk be diversified away by investing in both Turkiye Halk and Vakif 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 Turkiye Halk and Vakif Finansal 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 Vakif Finansal Kiralama, you can compare the effects of market volatilities on Turkiye Halk and Vakif 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 Turkiye Halk with a short position of Vakif Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Halk and Vakif Finansal.
Diversification Opportunities for Turkiye Halk and Vakif Finansal
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Turkiye and Vakif is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Halk Bankasi and Vakif Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakif Finansal Kiralama 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 Vakif Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakif Finansal Kiralama has no effect on the direction of Turkiye Halk i.e., Turkiye Halk and Vakif Finansal go up and down completely randomly.
Pair Corralation between Turkiye Halk and Vakif Finansal
Assuming the 90 days trading horizon Turkiye Halk Bankasi is expected to generate 0.58 times more return on investment than Vakif Finansal. However, Turkiye Halk Bankasi is 1.72 times less risky than Vakif Finansal. It trades about 0.32 of its potential returns per unit of risk. Vakif Finansal Kiralama is currently generating about -0.01 per unit of risk. If you would invest 1,450 in Turkiye Halk Bankasi on September 1, 2024 and sell it today you would earn a total of 175.00 from holding Turkiye Halk Bankasi or generate 12.07% 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. Vakif Finansal Kiralama
Performance |
| Timeline |
| Turkiye Halk Bankasi |
| Vakif Finansal Kiralama |
Turkiye Halk and Vakif Finansal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Halk and Vakif Finansal
The main advantage of trading using opposite Turkiye Halk and Vakif Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Halk position performs unexpectedly, Vakif 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 Vakif Finansal will offset losses from the drop in Vakif Finansal'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 |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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