Correlation Between Turkiye Garanti and Uwharrie Capital
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Uwharrie Capital 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 Uwharrie Capital 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 Uwharrie Capital Corp, you can compare the effects of market volatilities on Turkiye Garanti and Uwharrie Capital 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 Uwharrie Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Uwharrie Capital.
Diversification Opportunities for Turkiye Garanti and Uwharrie Capital
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Uwharrie is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Uwharrie Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uwharrie Capital Corp 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 Uwharrie Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uwharrie Capital Corp has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Uwharrie Capital go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Uwharrie Capital
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 1.75 times more return on investment than Uwharrie Capital. However, Turkiye Garanti is 1.75 times more volatile than Uwharrie Capital Corp. It trades about 0.07 of its potential returns per unit of risk. Uwharrie Capital Corp 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 221.00 from holding Turkiye Garanti Bankasi or generate 164.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.13% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Uwharrie Capital Corp
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
| Uwharrie Capital Corp |
Turkiye Garanti and Uwharrie Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Uwharrie Capital
The main advantage of trading using opposite Turkiye Garanti and Uwharrie Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Uwharrie Capital 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 Uwharrie Capital will offset losses from the drop in Uwharrie Capital's long position.| Turkiye Garanti vs. First Hawaiian | Turkiye Garanti vs. Central Pacific Financial | Turkiye Garanti vs. Territorial Bancorp | Turkiye Garanti vs. Comerica |
| Uwharrie Capital vs. ENB Financial Corp | Uwharrie Capital vs. First Reliance Bancshares | Uwharrie Capital vs. Oak Ridge Financial | Uwharrie Capital vs. Glen Burnie Bancorp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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