Correlation Between Akbank Turk and First Hawaiian
Can any of the company-specific risk be diversified away by investing in both Akbank Turk and First Hawaiian 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 Akbank Turk and First Hawaiian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank Turk Anonim and First Hawaiian, you can compare the effects of market volatilities on Akbank Turk and First Hawaiian 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 Akbank Turk with a short position of First Hawaiian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank Turk and First Hawaiian.
Diversification Opportunities for Akbank Turk and First Hawaiian
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Akbank and First is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Akbank Turk Anonim and First Hawaiian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Hawaiian and Akbank Turk 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 Akbank Turk Anonim are associated (or correlated) with First Hawaiian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Hawaiian has no effect on the direction of Akbank Turk i.e., Akbank Turk and First Hawaiian go up and down completely randomly.
Pair Corralation between Akbank Turk and First Hawaiian
Assuming the 90 days horizon Akbank Turk is expected to generate 25.29 times less return on investment than First Hawaiian. In addition to that, Akbank Turk is 1.87 times more volatile than First Hawaiian. It trades about 0.0 of its total potential returns per unit of risk. First Hawaiian is currently generating about 0.14 per unit of volatility. If you would invest 2,288 in First Hawaiian on September 6, 2024 and sell it today you would earn a total of 422.00 from holding First Hawaiian or generate 18.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Akbank Turk Anonim vs. First Hawaiian
Performance |
Timeline |
Akbank Turk Anonim |
First Hawaiian |
Akbank Turk and First Hawaiian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Akbank Turk and First Hawaiian
The main advantage of trading using opposite Akbank Turk and First Hawaiian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank Turk position performs unexpectedly, First Hawaiian 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 First Hawaiian will offset losses from the drop in First Hawaiian's long position.Akbank Turk vs. First Hawaiian | Akbank Turk vs. Central Pacific Financial | Akbank Turk vs. Territorial Bancorp | Akbank Turk vs. Comerica |
First Hawaiian vs. Finward Bancorp | First Hawaiian vs. Aquagold International | First Hawaiian vs. Thrivent High Yield | First Hawaiian vs. Morningstar Unconstrained Allocation |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |