Correlation Between Turkiye Garanti and SpareBank
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and SpareBank 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 SpareBank 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 SpareBank 1 SMN, you can compare the effects of market volatilities on Turkiye Garanti and SpareBank 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 SpareBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and SpareBank.
Diversification Opportunities for Turkiye Garanti and SpareBank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Turkiye and SpareBank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and SpareBank 1 SMN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpareBank 1 SMN 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 SpareBank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpareBank 1 SMN has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and SpareBank go up and down completely randomly.
Pair Corralation between Turkiye Garanti and SpareBank
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 4.31 times more return on investment than SpareBank. However, Turkiye Garanti is 4.31 times more volatile than SpareBank 1 SMN. It trades about 0.05 of its potential returns per unit of risk. SpareBank 1 SMN is currently generating about 0.09 per unit of risk. If you would invest 310.00 in Turkiye Garanti Bankasi on September 3, 2024 and sell it today you would earn a total of 49.00 from holding Turkiye Garanti Bankasi or generate 15.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. SpareBank 1 SMN
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| SpareBank 1 SMN |
Turkiye Garanti and SpareBank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and SpareBank
The main advantage of trading using opposite Turkiye Garanti and SpareBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, SpareBank 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 SpareBank will offset losses from the drop in SpareBank's long position.| Turkiye Garanti vs. First Hawaiian | Turkiye Garanti vs. Central Pacific Financial | Turkiye Garanti vs. Territorial Bancorp | Turkiye Garanti vs. Comerica |
| SpareBank vs. First Hawaiian | SpareBank vs. Central Pacific Financial | SpareBank vs. Territorial Bancorp | SpareBank 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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