Correlation Between Turkiye Kalkinma and Sekerbank TAS
Can any of the company-specific risk be diversified away by investing in both Turkiye Kalkinma 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 Kalkinma 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 Kalkinma Bankasi and Sekerbank TAS, you can compare the effects of market volatilities on Turkiye Kalkinma 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 Kalkinma with a short position of Sekerbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Kalkinma and Sekerbank TAS.
Diversification Opportunities for Turkiye Kalkinma and Sekerbank TAS
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and Sekerbank is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Kalkinma 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 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 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 Kalkinma i.e., Turkiye Kalkinma and Sekerbank TAS go up and down completely randomly.
Pair Corralation between Turkiye Kalkinma and Sekerbank TAS
Assuming the 90 days trading horizon Turkiye Kalkinma Bankasi is expected to generate 2.0 times more return on investment than Sekerbank TAS. However, Turkiye Kalkinma is 2.0 times more volatile than Sekerbank TAS. It trades about 0.05 of its potential returns per unit of risk. Sekerbank TAS is currently generating about 0.06 per unit of risk. If you would invest 774.00 in Turkiye Kalkinma Bankasi on August 28, 2024 and sell it today you would earn a total of 745.00 from holding Turkiye Kalkinma Bankasi or generate 96.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Kalkinma Bankasi vs. Sekerbank TAS
Performance |
| Timeline |
| Turkiye Kalkinma Bankasi |
| Sekerbank TAS |
Turkiye Kalkinma and Sekerbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Kalkinma and Sekerbank TAS
The main advantage of trading using opposite Turkiye Kalkinma and Sekerbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Kalkinma 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 Kalkinma vs. Qnb Finansbank AS | Turkiye Kalkinma vs. Turkiye Vakiflar Bankasi | Turkiye Kalkinma vs. Turkiye Halk Bankasi | Turkiye Kalkinma vs. Turkiye Sinai Kalkinma |
| Sekerbank TAS vs. Turkiye Is Bankasi | Sekerbank TAS vs. Turkiye Is Bankasi | Sekerbank TAS vs. Haci Omer Sabanci | Sekerbank TAS vs. Turkiye Halk Bankasi |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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