Correlation Between Turkiye Garanti and Sumitomo Mitsui
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Sumitomo Mitsui 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 Sumitomo Mitsui 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 Sumitomo Mitsui Trust, you can compare the effects of market volatilities on Turkiye Garanti and Sumitomo Mitsui 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 Sumitomo Mitsui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Sumitomo Mitsui.
Diversification Opportunities for Turkiye Garanti and Sumitomo Mitsui
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turkiye and Sumitomo is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Sumitomo Mitsui Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Mitsui Trust 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 Sumitomo Mitsui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Mitsui Trust has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Sumitomo Mitsui go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Sumitomo Mitsui
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 2.12 times more return on investment than Sumitomo Mitsui. However, Turkiye Garanti is 2.12 times more volatile than Sumitomo Mitsui Trust. It trades about 0.09 of its potential returns per unit of risk. Sumitomo Mitsui Trust is currently generating about 0.07 per unit of risk. If you would invest 184.00 in Turkiye Garanti Bankasi on September 4, 2024 and sell it today you would earn a total of 175.00 from holding Turkiye Garanti Bankasi or generate 95.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Sumitomo Mitsui Trust
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Sumitomo Mitsui Trust |
Turkiye Garanti and Sumitomo Mitsui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Sumitomo Mitsui
The main advantage of trading using opposite Turkiye Garanti and Sumitomo Mitsui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Sumitomo Mitsui 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 Sumitomo Mitsui will offset losses from the drop in Sumitomo Mitsui'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 |
| Sumitomo Mitsui vs. MSAD Insurance Group | Sumitomo Mitsui vs. Svenska Handelsbanken PK | Sumitomo Mitsui vs. Sekisui House Ltd | Sumitomo Mitsui vs. Daiwa House Industry |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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