Correlation Between Turkiye Garanti and Summit Bancshares
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Summit Bancshares 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 Summit Bancshares 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 Summit Bancshares, you can compare the effects of market volatilities on Turkiye Garanti and Summit Bancshares 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 Summit Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Summit Bancshares.
Diversification Opportunities for Turkiye Garanti and Summit Bancshares
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Turkiye and Summit is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Summit Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Bancshares 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 Summit Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Bancshares has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Summit Bancshares go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Summit Bancshares
If you would invest 4,411 in Summit Bancshares on October 24, 2024 and sell it today you would earn a total of 588.00 from holding Summit Bancshares or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Turkiye Garanti Bankasi vs. Summit Bancshares
Performance |
| Timeline |
| Turkiye Garanti Bankasi |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Summit Bancshares |
Turkiye Garanti and Summit Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Garanti and Summit Bancshares
The main advantage of trading using opposite Turkiye Garanti and Summit Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Summit Bancshares 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 Summit Bancshares will offset losses from the drop in Summit Bancshares' 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 |
| Summit Bancshares vs. Century Next Financial | Summit Bancshares vs. Triad Business Bank | Summit Bancshares vs. First Ottawa Bancshares | Summit Bancshares vs. First Community Financial |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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