Correlation Between Turkiye Garanti and Banco Del
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Banco Del 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 Garanti and Banco Del into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Garanti Bankasi and Banco del Bajo, you can compare the effects of market volatilities on Turkiye Garanti and Banco Del 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 Garanti with a short position of Banco Del. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Banco Del.
Diversification Opportunities for Turkiye Garanti and Banco Del
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turkiye and Banco is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Banco del Bajo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco del Bajo and Turkiye Garanti 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 Garanti Bankasi are associated (or correlated) with Banco Del. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco del Bajo has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Banco Del go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Banco Del
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 1.27 times more return on investment than Banco Del. However, Turkiye Garanti is 1.27 times more volatile than Banco del Bajo. It trades about 0.05 of its potential returns per unit of risk. Banco del Bajo is currently generating about -0.34 per unit of risk. If you would invest 318.00 in Turkiye Garanti Bankasi on August 29, 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 | 36.36% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Banco del Bajo
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Banco del Bajo |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Turkiye Garanti and Banco Del Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Banco Del
The main advantage of trading using opposite Turkiye Garanti and Banco Del positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Banco Del 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 Banco Del will offset losses from the drop in Banco Del's long position.| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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