Correlation Between Touchmark Bancshares and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Touchmark Bancshares and Turkiye Garanti 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 Touchmark Bancshares and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchmark Bancshares and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Touchmark Bancshares and Turkiye Garanti 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 Touchmark Bancshares with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchmark Bancshares and Turkiye Garanti.
Diversification Opportunities for Touchmark Bancshares and Turkiye Garanti
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Touchmark and Turkiye is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Touchmark Bancshares and Turkiye Garanti Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Garanti Bankasi and Touchmark Bancshares 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 Touchmark Bancshares are associated (or correlated) with Turkiye Garanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Garanti Bankasi has no effect on the direction of Touchmark Bancshares i.e., Touchmark Bancshares and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Touchmark Bancshares and Turkiye Garanti
Given the investment horizon of 90 days Touchmark Bancshares is expected to under-perform the Turkiye Garanti. But the pink sheet apears to be less risky and, when comparing its historical volatility, Touchmark Bancshares is 2.67 times less risky than Turkiye Garanti. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Turkiye Garanti Bankasi is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 301.00 in Turkiye Garanti Bankasi on September 2, 2024 and sell it today you would earn a total of 54.00 from holding Turkiye Garanti Bankasi or generate 17.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchmark Bancshares vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Touchmark Bancshares |
| Turkiye Garanti Bankasi |
Touchmark Bancshares and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchmark Bancshares and Turkiye Garanti
The main advantage of trading using opposite Touchmark Bancshares and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchmark Bancshares position performs unexpectedly, Turkiye Garanti 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 Turkiye Garanti will offset losses from the drop in Turkiye Garanti's long position.| Touchmark Bancshares vs. Piraeus Bank SA | Touchmark Bancshares vs. Turkiye Garanti Bankasi | Touchmark Bancshares vs. Uwharrie Capital Corp |
| Turkiye Garanti vs. Kasikornbank Public Co | Turkiye Garanti vs. Hang Seng Bank | Turkiye Garanti vs. PT Bank Rakyat | Turkiye Garanti vs. Delhi Bank 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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