Correlation Between Turkiye Garanti and Oxford Bank
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Oxford 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 Oxford 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 Oxford Bank, you can compare the effects of market volatilities on Turkiye Garanti and Oxford 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 Oxford Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Oxford Bank.
Diversification Opportunities for Turkiye Garanti and Oxford Bank
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Oxford is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Oxford Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford 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 Oxford Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Bank has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Oxford Bank go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Oxford Bank
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to under-perform the Oxford Bank. In addition to that, Turkiye Garanti is 3.91 times more volatile than Oxford Bank. It trades about -0.01 of its total potential returns per unit of risk. Oxford Bank is currently generating about 0.17 per unit of volatility. If you would invest 3,250 in Oxford Bank on August 25, 2024 and sell it today you would earn a total of 90.00 from holding Oxford Bank or generate 2.77% 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. Oxford Bank
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Oxford Bank |
Turkiye Garanti and Oxford Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Oxford Bank
The main advantage of trading using opposite Turkiye Garanti and Oxford Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Oxford 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 Oxford Bank will offset losses from the drop in Oxford 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 |
| Oxford Bank vs. Standard Bank Group | Oxford Bank vs. PSB Holdings | Oxford Bank vs. United Overseas Bank | Oxford 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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