Correlation Between Koc Holding and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Koc Holding 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 Koc Holding and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koc Holding AS and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Koc Holding 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 Koc Holding with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Turkiye Garanti.
Diversification Opportunities for Koc Holding and Turkiye Garanti
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koc and Turkiye is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS 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 Koc Holding 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 Koc Holding AS 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 Koc Holding i.e., Koc Holding and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Koc Holding and Turkiye Garanti
Assuming the 90 days trading horizon Koc Holding AS is expected to generate 0.78 times more return on investment than Turkiye Garanti. However, Koc Holding AS is 1.29 times less risky than Turkiye Garanti. It trades about 0.35 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.22 per unit of risk. If you would invest 17,300 in Koc Holding AS on August 31, 2024 and sell it today you would earn a total of 2,800 from holding Koc Holding AS or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holding AS vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Koc Holding AS |
| Turkiye Garanti Bankasi |
Koc Holding and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Turkiye Garanti
The main advantage of trading using opposite Koc Holding and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding 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.| Koc Holding vs. Haci Omer Sabanci | Koc Holding vs. Turkiye Sise ve | Koc Holding vs. Turkiye Petrol Rafinerileri | Koc Holding vs. Turkiye Garanti Bankasi |
| Turkiye Garanti vs. Yapi ve Kredi | Turkiye Garanti vs. Turkiye Is Bankasi | Turkiye Garanti vs. Koc Holding AS | Turkiye Garanti vs. Haci Omer Sabanci |
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 Stocks Directory module to find actively traded stocks across global markets.
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