Correlation Between Turkiye Garanti and Oconee Financial
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Oconee Financial 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 Oconee Financial 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 Oconee Financial, you can compare the effects of market volatilities on Turkiye Garanti and Oconee Financial 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 Oconee Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Oconee Financial.
Diversification Opportunities for Turkiye Garanti and Oconee Financial
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Oconee is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Oconee Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oconee Financial 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 Oconee Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oconee Financial has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Oconee Financial go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Oconee Financial
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to under-perform the Oconee Financial. In addition to that, Turkiye Garanti is 22.08 times more volatile than Oconee Financial. It trades about -0.08 of its total potential returns per unit of risk. Oconee Financial is currently generating about 0.29 per unit of volatility. If you would invest 3,800 in Oconee Financial on August 26, 2024 and sell it today you would earn a total of 71.00 from holding Oconee Financial or generate 1.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Turkiye Garanti Bankasi vs. Oconee Financial
Performance |
Timeline |
Turkiye Garanti Bankasi |
Oconee Financial |
Turkiye Garanti and Oconee Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turkiye Garanti and Oconee Financial
The main advantage of trading using opposite Turkiye Garanti and Oconee Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Oconee Financial 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 Oconee Financial will offset losses from the drop in Oconee Financial's long position.The idea behind Turkiye Garanti Bankasi and Oconee Financial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Oconee Financial vs. PSB Holdings | Oconee Financial vs. United Overseas Bank | Oconee Financial 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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