Correlation Between Turkiye Garanti and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Turkiye Garanti and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Dow Jones.
Diversification Opportunities for Turkiye Garanti and Dow Jones
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and Dow is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Dow Jones go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Dow Jones
If you would invest 3,624,787 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 866,278 from holding Dow Jones Industrial or generate 23.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Dow Jones Industrial
Performance |
| Timeline |
Turkiye Garanti and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Turkiye Garanti Bankasi
Pair trading matchups for Turkiye Garanti
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Turkiye Garanti and Dow Jones
The main advantage of trading using opposite Turkiye Garanti and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |