Correlation Between Turkiye Garanti and Harbor Bankshares
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Harbor Bankshares 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 Harbor Bankshares 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 Harbor Bankshares, you can compare the effects of market volatilities on Turkiye Garanti and Harbor Bankshares 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 Harbor Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Harbor Bankshares.
Diversification Opportunities for Turkiye Garanti and Harbor Bankshares
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and Harbor is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Harbor Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Bankshares 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 Harbor Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Bankshares has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Harbor Bankshares go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Harbor Bankshares
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 0.97 times more return on investment than Harbor Bankshares. However, Turkiye Garanti Bankasi is 1.03 times less risky than Harbor Bankshares. It trades about 0.41 of its potential returns per unit of risk. Harbor Bankshares is currently generating about 0.21 per unit of risk. If you would invest 288.00 in Turkiye Garanti Bankasi on September 3, 2024 and sell it today you would earn a total of 71.00 from holding Turkiye Garanti Bankasi or generate 24.65% 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. Harbor Bankshares
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Harbor Bankshares |
Turkiye Garanti and Harbor Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Harbor Bankshares
The main advantage of trading using opposite Turkiye Garanti and Harbor Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Harbor Bankshares 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 Harbor Bankshares will offset losses from the drop in Harbor Bankshares' long position.| Turkiye Garanti vs. First Hawaiian | Turkiye Garanti vs. Central Pacific Financial | Turkiye Garanti vs. Territorial Bancorp | Turkiye Garanti vs. Comerica |
| Harbor Bankshares vs. First Hawaiian | Harbor Bankshares vs. Central Pacific Financial | Harbor Bankshares vs. Territorial Bancorp | Harbor Bankshares vs. Comerica |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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