Correlation Between Turkiye Kalkinma and Hektas Ticaret
Can any of the company-specific risk be diversified away by investing in both Turkiye Kalkinma and Hektas Ticaret 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 Kalkinma and Hektas Ticaret into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Kalkinma Bankasi and Hektas Ticaret TAS, you can compare the effects of market volatilities on Turkiye Kalkinma and Hektas Ticaret 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 Kalkinma with a short position of Hektas Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Kalkinma and Hektas Ticaret.
Diversification Opportunities for Turkiye Kalkinma and Hektas Ticaret
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Hektas is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Kalkinma Bankasi and Hektas Ticaret TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hektas Ticaret TAS and Turkiye Kalkinma 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 Kalkinma Bankasi are associated (or correlated) with Hektas Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hektas Ticaret TAS has no effect on the direction of Turkiye Kalkinma i.e., Turkiye Kalkinma and Hektas Ticaret go up and down completely randomly.
Pair Corralation between Turkiye Kalkinma and Hektas Ticaret
Assuming the 90 days trading horizon Turkiye Kalkinma is expected to generate 8.27 times less return on investment than Hektas Ticaret. But when comparing it to its historical volatility, Turkiye Kalkinma Bankasi is 2.3 times less risky than Hektas Ticaret. It trades about 0.05 of its potential returns per unit of risk. Hektas Ticaret TAS is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 364.00 in Hektas Ticaret TAS on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Hektas Ticaret TAS or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Kalkinma Bankasi vs. Hektas Ticaret TAS
Performance |
| Timeline |
| Turkiye Kalkinma Bankasi |
| Hektas Ticaret TAS |
Turkiye Kalkinma and Hektas Ticaret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Kalkinma and Hektas Ticaret
The main advantage of trading using opposite Turkiye Kalkinma and Hektas Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Kalkinma position performs unexpectedly, Hektas Ticaret 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 Hektas Ticaret will offset losses from the drop in Hektas Ticaret's long position.| Turkiye Kalkinma vs. Qnb Finansbank AS | Turkiye Kalkinma vs. Turkiye Vakiflar Bankasi | Turkiye Kalkinma vs. Turkiye Halk Bankasi | Turkiye Kalkinma vs. Turkiye Sinai Kalkinma |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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