Correlation Between Turkiye Garanti and Commerzbank
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Commerzbank 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 Commerzbank 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 Commerzbank AG, you can compare the effects of market volatilities on Turkiye Garanti and Commerzbank 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 Commerzbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Commerzbank.
Diversification Opportunities for Turkiye Garanti and Commerzbank
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Commerzbank is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Commerzbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commerzbank AG 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 Commerzbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commerzbank AG has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Commerzbank go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Commerzbank
Assuming the 90 days horizon Turkiye Garanti is expected to generate 1.2 times less return on investment than Commerzbank. In addition to that, Turkiye Garanti is 1.4 times more volatile than Commerzbank AG. It trades about 0.07 of its total potential returns per unit of risk. Commerzbank AG is currently generating about 0.12 per unit of volatility. If you would invest 994.00 in Commerzbank AG on August 29, 2024 and sell it today you would earn a total of 806.00 from holding Commerzbank AG or generate 81.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.05% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Commerzbank AG
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Commerzbank AG |
Turkiye Garanti and Commerzbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Commerzbank
The main advantage of trading using opposite Turkiye Garanti and Commerzbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Commerzbank 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 Commerzbank will offset losses from the drop in Commerzbank'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 |
| Commerzbank vs. Israel Discount Bank | Commerzbank vs. Baraboo Bancorporation | Commerzbank vs. Danske Bank AS | Commerzbank 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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