Correlation Between Turkiye Garanti and National Bank
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and National Bank 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 National Bank 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 National Bank of, you can compare the effects of market volatilities on Turkiye Garanti and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and National Bank.
Diversification Opportunities for Turkiye Garanti and National Bank
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and National is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and National Bank go up and down completely randomly.
Pair Corralation between Turkiye Garanti and National Bank
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 1.37 times more return on investment than National Bank. However, Turkiye Garanti is 1.37 times more volatile than National Bank of. It trades about 0.08 of its potential returns per unit of risk. National Bank of is currently generating about 0.04 per unit of risk. If you would invest 177.00 in Turkiye Garanti Bankasi on August 26, 2024 and sell it today you would earn a total of 148.00 from holding Turkiye Garanti Bankasi or generate 83.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. National Bank of
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| National Bank |
Turkiye Garanti and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and National Bank
The main advantage of trading using opposite Turkiye Garanti and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank'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 |
| National Bank vs. PSB Holdings | National Bank vs. United Overseas Bank | National Bank 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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