Correlation Between Turkiye Garanti and Bank Rakyat
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Bank Rakyat 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 Bank Rakyat 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 Bank Rakyat, you can compare the effects of market volatilities on Turkiye Garanti and Bank Rakyat 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 Bank Rakyat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Bank Rakyat.
Diversification Opportunities for Turkiye Garanti and Bank Rakyat
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and Bank is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Bank Rakyat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 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 Bank Rakyat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Rakyat has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Bank Rakyat go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Bank Rakyat
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 1.84 times more return on investment than Bank Rakyat. However, Turkiye Garanti is 1.84 times more volatile than Bank Rakyat. It trades about 0.05 of its potential returns per unit of risk. Bank Rakyat is currently generating about -0.22 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Bank Rakyat
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Bank Rakyat |
Turkiye Garanti and Bank Rakyat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Bank Rakyat
The main advantage of trading using opposite Turkiye Garanti and Bank Rakyat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Bank Rakyat 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 Bank Rakyat will offset losses from the drop in Bank Rakyat'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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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