Correlation Between Turkiye Is and Sekerbank TAS
Can any of the company-specific risk be diversified away by investing in both Turkiye Is and Sekerbank TAS 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 Is and Sekerbank TAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Is Bankasi and Sekerbank TAS, you can compare the effects of market volatilities on Turkiye Is and Sekerbank TAS 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 Is with a short position of Sekerbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and Sekerbank TAS.
Diversification Opportunities for Turkiye Is and Sekerbank TAS
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and Sekerbank is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Sekerbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekerbank TAS and Turkiye Is 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 Is Bankasi are associated (or correlated) with Sekerbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekerbank TAS has no effect on the direction of Turkiye Is i.e., Turkiye Is and Sekerbank TAS go up and down completely randomly.
Pair Corralation between Turkiye Is and Sekerbank TAS
Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to under-perform the Sekerbank TAS. In addition to that, Turkiye Is is 1.23 times more volatile than Sekerbank TAS. It trades about -0.05 of its total potential returns per unit of risk. Sekerbank TAS is currently generating about 0.28 per unit of volatility. If you would invest 414.00 in Sekerbank TAS on August 30, 2024 and sell it today you would earn a total of 65.00 from holding Sekerbank TAS or generate 15.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Is Bankasi vs. Sekerbank TAS
Performance |
| Timeline |
| Turkiye Is Bankasi |
| Sekerbank TAS |
Turkiye Is and Sekerbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Is and Sekerbank TAS
The main advantage of trading using opposite Turkiye Is and Sekerbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Is position performs unexpectedly, Sekerbank TAS 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 Sekerbank TAS will offset losses from the drop in Sekerbank TAS's long position.| Turkiye Is vs. Politeknik Metal Sanayi | Turkiye Is vs. Cuhadaroglu Metal Sanayi | Turkiye Is vs. Datagate Bilgisayar Malzemeleri | Turkiye Is vs. Mackolik Internet Hizmetleri |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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