Correlation Between Turkiye Garanti and KBC Groep
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and KBC Groep 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 KBC Groep 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 KBC Groep NV, you can compare the effects of market volatilities on Turkiye Garanti and KBC Groep 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 KBC Groep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and KBC Groep.
Diversification Opportunities for Turkiye Garanti and KBC Groep
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and KBC is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and KBC Groep NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC Groep NV 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 KBC Groep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC Groep NV has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and KBC Groep go up and down completely randomly.
Pair Corralation between Turkiye Garanti and KBC Groep
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 2.25 times more return on investment than KBC Groep. However, Turkiye Garanti is 2.25 times more volatile than KBC Groep NV. It trades about 0.23 of its potential returns per unit of risk. KBC Groep NV is currently generating about -0.03 per unit of risk. If you would invest 307.00 in Turkiye Garanti Bankasi on September 2, 2024 and sell it today you would earn a total of 48.00 from holding Turkiye Garanti Bankasi or generate 15.64% 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. KBC Groep NV
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| KBC Groep NV |
Turkiye Garanti and KBC Groep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and KBC Groep
The main advantage of trading using opposite Turkiye Garanti and KBC Groep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, KBC Groep 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 KBC Groep will offset losses from the drop in KBC Groep'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 |
| KBC Groep vs. Piraeus Bank SA | KBC Groep vs. Turkiye Garanti Bankasi | KBC Groep vs. Uwharrie Capital Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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