Correlation Between Nedbank and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Nedbank 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 Nedbank and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nedbank Group and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Nedbank 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 Nedbank with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nedbank and Turkiye Garanti.
Diversification Opportunities for Nedbank and Turkiye Garanti
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nedbank and Turkiye is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Nedbank Group 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 Nedbank 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 Nedbank Group 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 Nedbank i.e., Nedbank and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Nedbank and Turkiye Garanti
Assuming the 90 days horizon Nedbank Group is expected to under-perform the Turkiye Garanti. But the pink sheet apears to be less risky and, when comparing its historical volatility, Nedbank Group is 1.96 times less risky than Turkiye Garanti. The pink sheet trades about -0.17 of its potential returns per unit of risk. The Turkiye Garanti Bankasi is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 318.00 in Turkiye Garanti Bankasi on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Turkiye Garanti Bankasi or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nedbank Group vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Nedbank Group |
| Turkiye Garanti Bankasi |
Nedbank and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nedbank and Turkiye Garanti
The main advantage of trading using opposite Nedbank and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nedbank 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.| Nedbank vs. Standard Bank Group | Nedbank vs. Sanlam Ltd PK | Nedbank vs. Absa Group Ltd | Nedbank vs. Bank Mandiri Persero |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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