Correlation Between Turkiye Garanti and Commercial International
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Commercial International 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 Commercial International 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 Commercial International Bank, you can compare the effects of market volatilities on Turkiye Garanti and Commercial International 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 Commercial International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Commercial International.
Diversification Opportunities for Turkiye Garanti and Commercial International
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Commercial is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Commercial International Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial International 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 Commercial International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial International has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Commercial International go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Commercial International
If you would invest 56.00 in Turkiye Garanti Bankasi on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Turkiye Garanti Bankasi or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.6% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Commercial International Bank
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Commercial International |
Turkiye Garanti and Commercial International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Commercial International
The main advantage of trading using opposite Turkiye Garanti and Commercial International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Commercial International 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 Commercial International will offset losses from the drop in Commercial International'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 |
| Commercial International vs. First Hawaiian | Commercial International vs. Central Pacific Financial | Commercial International vs. Territorial Bancorp | Commercial International 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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