Correlation Between Turkiye Vakiflar and Turkiye Halk
Can any of the company-specific risk be diversified away by investing in both Turkiye Vakiflar and Turkiye Halk 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 Vakiflar and Turkiye Halk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Vakiflar Bankasi and Turkiye Halk Bankasi, you can compare the effects of market volatilities on Turkiye Vakiflar and Turkiye Halk 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 Vakiflar with a short position of Turkiye Halk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Vakiflar and Turkiye Halk.
Diversification Opportunities for Turkiye Vakiflar and Turkiye Halk
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkiye and Turkiye is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Vakiflar Bankasi and Turkiye Halk Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Halk Bankasi and Turkiye Vakiflar 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 Vakiflar Bankasi are associated (or correlated) with Turkiye Halk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Halk Bankasi has no effect on the direction of Turkiye Vakiflar i.e., Turkiye Vakiflar and Turkiye Halk go up and down completely randomly.
Pair Corralation between Turkiye Vakiflar and Turkiye Halk
Assuming the 90 days trading horizon Turkiye Vakiflar Bankasi is expected to generate 1.02 times more return on investment than Turkiye Halk. However, Turkiye Vakiflar is 1.02 times more volatile than Turkiye Halk Bankasi. It trades about 0.08 of its potential returns per unit of risk. Turkiye Halk Bankasi is currently generating about 0.05 per unit of risk. If you would invest 960.00 in Turkiye Vakiflar Bankasi on August 25, 2024 and sell it today you would earn a total of 1,592 from holding Turkiye Vakiflar Bankasi or generate 165.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Vakiflar Bankasi vs. Turkiye Halk Bankasi
Performance |
| Timeline |
| Turkiye Vakiflar Bankasi |
| Turkiye Halk Bankasi |
Turkiye Vakiflar and Turkiye Halk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Vakiflar and Turkiye Halk
The main advantage of trading using opposite Turkiye Vakiflar and Turkiye Halk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Vakiflar position performs unexpectedly, Turkiye Halk 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 Halk will offset losses from the drop in Turkiye Halk's long position.| Turkiye Vakiflar vs. Turkiye Halk Bankasi | Turkiye Vakiflar vs. Turkiye Is Bankasi | Turkiye Vakiflar vs. Akbank TAS | Turkiye Vakiflar vs. Yapi ve Kredi |
| Turkiye Halk vs. Turkiye Garanti Bankasi | Turkiye Halk vs. Turkiye Is Bankasi | Turkiye Halk vs. Turkiye Vakiflar Bankasi | Turkiye Halk vs. Akbank TAS |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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