Correlation Between Turkiye Garanti and Standard Bank
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Standard 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 Standard 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 Standard Bank Group, you can compare the effects of market volatilities on Turkiye Garanti and Standard 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 Standard Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Standard Bank.
Diversification Opportunities for Turkiye Garanti and Standard Bank
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Turkiye and Standard is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Standard Bank Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Bank Group 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 Standard Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Bank Group has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Standard Bank go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Standard Bank
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 1.99 times more return on investment than Standard Bank. However, Turkiye Garanti is 1.99 times more volatile than Standard Bank Group. It trades about 0.08 of its potential returns per unit of risk. Standard Bank Group is currently generating about 0.09 per unit of risk. If you would invest 196.00 in Turkiye Garanti Bankasi on August 28, 2024 and sell it today you would earn a total of 129.00 from holding Turkiye Garanti Bankasi or generate 65.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.04% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Standard Bank Group
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Standard Bank Group |
Turkiye Garanti and Standard Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Standard Bank
The main advantage of trading using opposite Turkiye Garanti and Standard Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Standard 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 Standard Bank will offset losses from the drop in Standard 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 |
| Standard Bank vs. Bank Central Asia | Standard Bank vs. Nedbank Group | Standard Bank vs. Kasikornbank Public Co | Standard Bank vs. KBC Groep NV |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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