Correlation Between Smart Gunes and Turkiye Kalkinma
Can any of the company-specific risk be diversified away by investing in both Smart Gunes and Turkiye Kalkinma 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 Smart Gunes and Turkiye Kalkinma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart Gunes Enerjisi and Turkiye Kalkinma Bankasi, you can compare the effects of market volatilities on Smart Gunes and Turkiye Kalkinma 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 Smart Gunes with a short position of Turkiye Kalkinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Gunes and Turkiye Kalkinma.
Diversification Opportunities for Smart Gunes and Turkiye Kalkinma
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Smart and Turkiye is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Smart Gunes Enerjisi and Turkiye Kalkinma Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Kalkinma Bankasi and Smart Gunes 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 Smart Gunes Enerjisi are associated (or correlated) with Turkiye Kalkinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Kalkinma Bankasi has no effect on the direction of Smart Gunes i.e., Smart Gunes and Turkiye Kalkinma go up and down completely randomly.
Pair Corralation between Smart Gunes and Turkiye Kalkinma
Assuming the 90 days trading horizon Smart Gunes is expected to generate 1.32 times less return on investment than Turkiye Kalkinma. In addition to that, Smart Gunes is 1.98 times more volatile than Turkiye Kalkinma Bankasi. It trades about 0.04 of its total potential returns per unit of risk. Turkiye Kalkinma Bankasi is currently generating about 0.1 per unit of volatility. If you would invest 1,475 in Turkiye Kalkinma Bankasi on August 30, 2024 and sell it today you would earn a total of 37.00 from holding Turkiye Kalkinma Bankasi or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smart Gunes Enerjisi vs. Turkiye Kalkinma Bankasi
Performance |
| Timeline |
| Smart Gunes Enerjisi |
| Turkiye Kalkinma Bankasi |
Smart Gunes and Turkiye Kalkinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart Gunes and Turkiye Kalkinma
The main advantage of trading using opposite Smart Gunes and Turkiye Kalkinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Gunes position performs unexpectedly, Turkiye Kalkinma 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 Kalkinma will offset losses from the drop in Turkiye Kalkinma's long position.| Smart Gunes vs. Creditwest Faktoring AS | Smart Gunes vs. MEGA METAL | Smart Gunes vs. Trabzonspor Sportif Yatirim | Smart Gunes vs. Sodas Sodyum Sanayi |
| Turkiye Kalkinma vs. Qnb Finansbank AS | Turkiye Kalkinma vs. Turkiye Vakiflar Bankasi | Turkiye Kalkinma vs. Turkiye Halk Bankasi | Turkiye Kalkinma vs. Turkiye Sinai Kalkinma |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |