Correlation Between Infinity Bank and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Infinity Bank and Turkiye Garanti 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 Infinity Bank and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinity Bank and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Infinity Bank and Turkiye Garanti 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 Infinity Bank with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinity Bank and Turkiye Garanti.
Diversification Opportunities for Infinity Bank and Turkiye Garanti
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinity and Turkiye is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Infinity Bank and Turkiye Garanti Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Garanti Bankasi and Infinity Bank 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 Infinity Bank are associated (or correlated) with Turkiye Garanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Garanti Bankasi has no effect on the direction of Infinity Bank i.e., Infinity Bank and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Infinity Bank and Turkiye Garanti
Given the investment horizon of 90 days Infinity Bank is expected to generate 4.45 times less return on investment than Turkiye Garanti. But when comparing it to its historical volatility, Infinity Bank is 3.33 times less risky than Turkiye Garanti. It trades about 0.18 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 305.00 in Turkiye Garanti Bankasi on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Turkiye Garanti Bankasi or generate 16.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinity Bank vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Infinity Bank |
| Turkiye Garanti Bankasi |
Infinity Bank and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinity Bank and Turkiye Garanti
The main advantage of trading using opposite Infinity Bank and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinity Bank position performs unexpectedly, Turkiye Garanti 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 Garanti will offset losses from the drop in Turkiye Garanti's long position.| Infinity Bank vs. Piraeus Bank SA | Infinity Bank vs. Turkiye Garanti Bankasi | Infinity Bank vs. Delhi Bank Corp | Infinity Bank vs. Uwharrie Capital Corp |
| Turkiye Garanti vs. Kasikornbank Public Co | Turkiye Garanti vs. Hang Seng Bank | Turkiye Garanti vs. PT Bank Rakyat | Turkiye Garanti vs. Delhi Bank Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |