Correlation Between Uwharrie Capital and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Uwharrie Capital 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 Uwharrie Capital and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uwharrie Capital Corp and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Uwharrie Capital 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 Uwharrie Capital with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uwharrie Capital and Turkiye Garanti.
Diversification Opportunities for Uwharrie Capital and Turkiye Garanti
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uwharrie and Turkiye is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Uwharrie Capital Corp 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 Uwharrie Capital 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 Uwharrie Capital Corp 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 Uwharrie Capital i.e., Uwharrie Capital and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Uwharrie Capital and Turkiye Garanti
Given the investment horizon of 90 days Uwharrie Capital Corp is expected to under-perform the Turkiye Garanti. But the otc stock apears to be less risky and, when comparing its historical volatility, Uwharrie Capital Corp is 2.68 times less risky than Turkiye Garanti. The otc stock trades about -0.04 of its potential returns per unit of risk. The Turkiye Garanti Bankasi is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 305.00 in Turkiye Garanti Bankasi on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Turkiye Garanti Bankasi or generate 16.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uwharrie Capital Corp vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Uwharrie Capital Corp |
| Turkiye Garanti Bankasi |
Uwharrie Capital and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uwharrie Capital and Turkiye Garanti
The main advantage of trading using opposite Uwharrie Capital and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uwharrie Capital 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.| Uwharrie Capital vs. ENB Financial Corp | Uwharrie Capital vs. First Reliance Bancshares | Uwharrie Capital vs. Oak Ridge Financial | Uwharrie Capital vs. Glen Burnie Bancorp |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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