Correlation Between Turkiye Garanti and Eastern Michigan
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Eastern Michigan 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 Eastern Michigan 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 Eastern Michigan Financial, you can compare the effects of market volatilities on Turkiye Garanti and Eastern Michigan 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 Eastern Michigan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Eastern Michigan.
Diversification Opportunities for Turkiye Garanti and Eastern Michigan
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Eastern is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Eastern Michigan Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Michigan Fin 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 Eastern Michigan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Michigan Fin has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Eastern Michigan go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Eastern Michigan
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 2.72 times more return on investment than Eastern Michigan. However, Turkiye Garanti is 2.72 times more volatile than Eastern Michigan Financial. It trades about 0.08 of its potential returns per unit of risk. Eastern Michigan Financial is currently generating about 0.15 per unit of risk. If you would invest 326.00 in Turkiye Garanti Bankasi on September 3, 2024 and sell it today you would earn a total of 29.00 from holding Turkiye Garanti Bankasi or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Eastern Michigan Financial
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Eastern Michigan Fin |
Turkiye Garanti and Eastern Michigan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Eastern Michigan
The main advantage of trading using opposite Turkiye Garanti and Eastern Michigan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Eastern Michigan 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 Eastern Michigan will offset losses from the drop in Eastern Michigan's long position.| Turkiye Garanti vs. First Hawaiian | Turkiye Garanti vs. Central Pacific Financial | Turkiye Garanti vs. Territorial Bancorp | Turkiye Garanti vs. Comerica |
| Eastern Michigan vs. Commercial National Financial | Eastern Michigan vs. Mifflinburg Bancorp | Eastern Michigan vs. Apollo Bancorp | Eastern Michigan vs. Community Bankers |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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