Correlation Between Visa and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Visa 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 Visa with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Turkiye Garanti.
Diversification Opportunities for Visa and Turkiye Garanti
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Visa and Turkiye is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A 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 Visa 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 Visa Class A 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 Visa i.e., Visa and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Visa and Turkiye Garanti
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.5 times more return on investment than Turkiye Garanti. However, Visa Class A is 2.02 times less risky than Turkiye Garanti. It trades about 0.11 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.05 per unit of risk. If you would invest 26,932 in Visa Class A on August 31, 2024 and sell it today you would earn a total of 4,576 from holding Visa Class A or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.64% |
| Values | Daily Returns |
Visa Class A vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Visa Class A |
| Turkiye Garanti Bankasi |
Visa and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Turkiye Garanti
The main advantage of trading using opposite Visa and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Turkiye Garanti vs. Yapi ve Kredi | Turkiye Garanti vs. Turkiye Is Bankasi | Turkiye Garanti vs. Koc Holding AS |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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