Correlation Between Seker Finansal and Garanti Faktoring
Can any of the company-specific risk be diversified away by investing in both Seker Finansal and Garanti Faktoring 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 Seker Finansal and Garanti Faktoring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seker Finansal Kiralama and Garanti Faktoring AS, you can compare the effects of market volatilities on Seker Finansal and Garanti Faktoring 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 Seker Finansal with a short position of Garanti Faktoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seker Finansal and Garanti Faktoring.
Diversification Opportunities for Seker Finansal and Garanti Faktoring
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Seker and Garanti is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Seker Finansal Kiralama and Garanti Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garanti Faktoring and Seker Finansal 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 Seker Finansal Kiralama are associated (or correlated) with Garanti Faktoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garanti Faktoring has no effect on the direction of Seker Finansal i.e., Seker Finansal and Garanti Faktoring go up and down completely randomly.
Pair Corralation between Seker Finansal and Garanti Faktoring
Assuming the 90 days trading horizon Seker Finansal is expected to generate 1.59 times less return on investment than Garanti Faktoring. In addition to that, Seker Finansal is 1.14 times more volatile than Garanti Faktoring AS. It trades about 0.03 of its total potential returns per unit of risk. Garanti Faktoring AS is currently generating about 0.06 per unit of volatility. If you would invest 1,940 in Garanti Faktoring AS on September 1, 2024 and sell it today you would earn a total of 33.00 from holding Garanti Faktoring AS or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Seker Finansal Kiralama vs. Garanti Faktoring AS
Performance |
| Timeline |
| Seker Finansal Kiralama |
| Garanti Faktoring |
Seker Finansal and Garanti Faktoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seker Finansal and Garanti Faktoring
The main advantage of trading using opposite Seker Finansal and Garanti Faktoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seker Finansal position performs unexpectedly, Garanti Faktoring 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 Garanti Faktoring will offset losses from the drop in Garanti Faktoring's long position.| Seker Finansal vs. Cuhadaroglu Metal Sanayi | Seker Finansal vs. Akcansa Cimento Sanayi | Seker Finansal vs. Borlease Otomotiv AS | Seker Finansal vs. Qnb Finansbank AS |
| Garanti Faktoring vs. Silverline Endustri ve | Garanti Faktoring vs. Trabzonspor Sportif Yatirim | Garanti Faktoring vs. Akcansa Cimento Sanayi | Garanti Faktoring vs. Sodas Sodyum Sanayi |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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