Correlation Between Turkiye Garanti and River Financial
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and River 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 River 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 River Financial, you can compare the effects of market volatilities on Turkiye Garanti and River 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 River Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and River Financial.
Diversification Opportunities for Turkiye Garanti and River Financial
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Turkiye and River is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and River Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on River 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 River Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of River Financial has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and River Financial go up and down completely randomly.
Pair Corralation between Turkiye Garanti and River Financial
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 5.26 times more return on investment than River Financial. However, Turkiye Garanti is 5.26 times more volatile than River Financial. It trades about 0.07 of its potential returns per unit of risk. River Financial is currently generating about -0.03 per unit of risk. If you would invest 134.00 in Turkiye Garanti Bankasi on September 3, 2024 and sell it today you would earn a total of 225.00 from holding Turkiye Garanti Bankasi or generate 167.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.32% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. River Financial
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| River Financial |
Turkiye Garanti and River Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and River Financial
The main advantage of trading using opposite Turkiye Garanti and River Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, River 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 River Financial will offset losses from the drop in River Financial's long position.| Turkiye Garanti vs. First Hawaiian | Turkiye Garanti vs. Central Pacific Financial | Turkiye Garanti vs. Territorial Bancorp | Turkiye Garanti vs. Comerica |
| River Financial vs. First Hawaiian | River Financial vs. Central Pacific Financial | River Financial vs. Territorial Bancorp | River Financial vs. Comerica |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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