Correlation Between Turkiye Garanti and Kasikornbank Public
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Kasikornbank Public 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 Kasikornbank Public 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 Kasikornbank Public Co, you can compare the effects of market volatilities on Turkiye Garanti and Kasikornbank Public 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 Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Kasikornbank Public.
Diversification Opportunities for Turkiye Garanti and Kasikornbank Public
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Turkiye and Kasikornbank is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Kasikornbank Public Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public 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 Kasikornbank Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kasikornbank Public has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Kasikornbank Public go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Kasikornbank Public
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 0.88 times more return on investment than Kasikornbank Public. However, Turkiye Garanti Bankasi is 1.13 times less risky than Kasikornbank Public. It trades about 0.05 of its potential returns per unit of risk. Kasikornbank Public Co is currently generating about -0.09 per unit of risk. If you would invest 318.00 in Turkiye Garanti Bankasi on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Turkiye Garanti Bankasi or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Kasikornbank Public Co
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Kasikornbank Public |
Turkiye Garanti and Kasikornbank Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Kasikornbank Public
The main advantage of trading using opposite Turkiye Garanti and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Kasikornbank Public 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 Kasikornbank Public will offset losses from the drop in Kasikornbank Public'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 |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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