Correlation Between Turkiye Garanti and Chiba Bank
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Chiba 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 Chiba 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 Chiba Bank Ltd, you can compare the effects of market volatilities on Turkiye Garanti and Chiba 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 Chiba Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Chiba Bank.
Diversification Opportunities for Turkiye Garanti and Chiba Bank
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Turkiye and Chiba is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Chiba Bank Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiba Bank 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 Chiba Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiba Bank has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Chiba Bank go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Chiba Bank
If you would invest 318.00 in Turkiye Garanti Bankasi on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Turkiye Garanti Bankasi or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Chiba Bank Ltd
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Chiba Bank |
Turkiye Garanti and Chiba Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Chiba Bank
The main advantage of trading using opposite Turkiye Garanti and Chiba Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Chiba 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 Chiba Bank will offset losses from the drop in Chiba 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 |
| Chiba Bank vs. Israel Discount Bank | Chiba Bank vs. Baraboo Bancorporation | Chiba Bank vs. Danske Bank AS | Chiba Bank vs. Jyske Bank AS |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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