Correlation Between Turkiye Garanti and Hang Seng
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Hang Seng 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 Hang Seng 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 Hang Seng Bank, you can compare the effects of market volatilities on Turkiye Garanti and Hang Seng 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 Hang Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Hang Seng.
Diversification Opportunities for Turkiye Garanti and Hang Seng
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Hang is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Hang Seng Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Seng 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 Hang Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Seng Bank has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Hang Seng go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Hang Seng
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 4.63 times more return on investment than Hang Seng. However, Turkiye Garanti is 4.63 times more volatile than Hang Seng Bank. It trades about 0.04 of its potential returns per unit of risk. Hang Seng Bank is currently generating about -0.21 per unit of risk. If you would invest 320.00 in Turkiye Garanti Bankasi on August 26, 2024 and sell it today you would earn a total of 5.00 from holding Turkiye Garanti Bankasi or generate 1.56% 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. Hang Seng Bank
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Hang Seng Bank |
Turkiye Garanti and Hang Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Hang Seng
The main advantage of trading using opposite Turkiye Garanti and Hang Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Hang Seng 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 Hang Seng will offset losses from the drop in Hang Seng'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 |
| Hang Seng vs. Standard Bank Group | Hang Seng vs. PSB Holdings | Hang Seng vs. United Overseas Bank | Hang Seng 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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