Correlation Between Turkiye Garanti and First Community
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and First Community 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 First Community 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 First Community, you can compare the effects of market volatilities on Turkiye Garanti and First Community 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 First Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and First Community.
Diversification Opportunities for Turkiye Garanti and First Community
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Turkiye and First is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and First Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Community 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 First Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Community has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and First Community go up and down completely randomly.
Pair Corralation between Turkiye Garanti and First Community
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 2.86 times more return on investment than First Community. However, Turkiye Garanti is 2.86 times more volatile than First Community. It trades about 0.03 of its potential returns per unit of risk. First Community is currently generating about 0.01 per unit of risk. If you would invest 313.00 in Turkiye Garanti Bankasi on August 25, 2024 and sell it today you would earn a total of 12.00 from holding Turkiye Garanti Bankasi or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. First Community
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| First Community |
Turkiye Garanti and First Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and First Community
The main advantage of trading using opposite Turkiye Garanti and First Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, First Community 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 First Community will offset losses from the drop in First Community'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 |
| First Community vs. Standard Bank Group | First Community vs. PSB Holdings | First Community vs. United Overseas Bank | First Community vs. Turkiye Garanti Bankasi |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |