Correlation Between Turkiye Garanti and PT Bank
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and PT Bank 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 PT Bank 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 PT Bank Rakyat, you can compare the effects of market volatilities on Turkiye Garanti and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and PT Bank.
Diversification Opportunities for Turkiye Garanti and PT Bank
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turkiye and BKRKF is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and PT Bank Rakyat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Rakyat 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Rakyat has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and PT Bank go up and down completely randomly.
Pair Corralation between Turkiye Garanti and PT Bank
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 0.8 times more return on investment than PT Bank. However, Turkiye Garanti Bankasi is 1.24 times less risky than PT Bank. It trades about 0.07 of its potential returns per unit of risk. PT Bank Rakyat is currently generating about 0.03 per unit of risk. If you would invest 123.00 in Turkiye Garanti Bankasi on August 29, 2024 and sell it today you would earn a total of 217.00 from holding Turkiye Garanti Bankasi or generate 176.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 83.54% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. PT Bank Rakyat
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| PT Bank Rakyat |
Turkiye Garanti and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and PT Bank
The main advantage of trading using opposite Turkiye Garanti and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank'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 |
| PT Bank vs. Bank Mandiri Persero | PT Bank vs. Piraeus Bank SA | PT Bank vs. Eurobank Ergasias Services | PT Bank vs. Kasikornbank Public Co |
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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