Correlation Between Turkiye Garanti and Chemung Financial
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Chemung 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 Chemung 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 Chemung Financial Corp, you can compare the effects of market volatilities on Turkiye Garanti and Chemung 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 Chemung Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Chemung Financial.
Diversification Opportunities for Turkiye Garanti and Chemung Financial
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turkiye and Chemung is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Chemung Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemung Financial 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 Chemung Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemung Financial Corp has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Chemung Financial go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Chemung Financial
If you would invest 4,778 in Chemung Financial Corp on September 1, 2024 and sell it today you would earn a total of 455.00 from holding Chemung Financial Corp or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Chemung Financial Corp
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Chemung Financial Corp |
Turkiye Garanti and Chemung Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Chemung Financial
The main advantage of trading using opposite Turkiye Garanti and Chemung Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Chemung 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 Chemung Financial will offset losses from the drop in Chemung Financial's long position.| Turkiye Garanti vs. Permanent TSB Group | Turkiye Garanti vs. Bank of Botetourt | Turkiye Garanti vs. Caixabank SA ADR | Turkiye Garanti vs. Hang Seng Bank |
| Chemung Financial vs. Affinity Bancshares | Chemung Financial vs. Southern California Bancorp | Chemung Financial vs. Auburn National Bancorporation | Chemung Financial vs. BayCom Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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