Correlation Between Turkiye Garanti and Bank Central
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Bank Central 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 Bank Central 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 Bank Central Asia, you can compare the effects of market volatilities on Turkiye Garanti and Bank Central 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 Bank Central. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Bank Central.
Diversification Opportunities for Turkiye Garanti and Bank Central
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turkiye and Bank is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Bank Central Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Central Asia 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 Bank Central. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Central Asia has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Bank Central go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Bank Central
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 2.22 times more return on investment than Bank Central. However, Turkiye Garanti is 2.22 times more volatile than Bank Central Asia. It trades about 0.05 of its potential returns per unit of risk. Bank Central Asia is currently generating about -0.29 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 | 100.0% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Bank Central Asia
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Bank Central Asia |
Turkiye Garanti and Bank Central Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Bank Central
The main advantage of trading using opposite Turkiye Garanti and Bank Central positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Bank Central 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 Bank Central will offset losses from the drop in Bank Central'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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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