Correlation Between Alkim Kagit and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Alkim Kagit 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 Alkim Kagit and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkim Kagit Sanayi and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Alkim Kagit 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 Alkim Kagit with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkim Kagit and Turkiye Garanti.
Diversification Opportunities for Alkim Kagit and Turkiye Garanti
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alkim and Turkiye is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Alkim Kagit Sanayi 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 Alkim Kagit 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 Alkim Kagit Sanayi 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 Alkim Kagit i.e., Alkim Kagit and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Alkim Kagit and Turkiye Garanti
Assuming the 90 days trading horizon Alkim Kagit Sanayi is expected to generate 1.2 times more return on investment than Turkiye Garanti. However, Alkim Kagit is 1.2 times more volatile than Turkiye Garanti Bankasi. It trades about 0.16 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.0 per unit of risk. If you would invest 660.00 in Alkim Kagit Sanayi on September 25, 2024 and sell it today you would earn a total of 183.00 from holding Alkim Kagit Sanayi or generate 27.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Alkim Kagit Sanayi vs. Turkiye Garanti Bankasi
Performance |
Timeline |
Alkim Kagit Sanayi |
Turkiye Garanti Bankasi |
Alkim Kagit and Turkiye Garanti Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alkim Kagit and Turkiye Garanti
The main advantage of trading using opposite Alkim Kagit and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkim Kagit 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.Alkim Kagit vs. Creditwest Faktoring AS | Alkim Kagit vs. MEGA METAL | Alkim Kagit vs. Trabzonspor Sportif Yatirim | Alkim Kagit vs. Cuhadaroglu Metal Sanayi |
Turkiye Garanti vs. Aksa Akrilik Kimya | Turkiye Garanti vs. Tofas Turk Otomobil | Turkiye Garanti vs. AK Sigorta AS | Turkiye Garanti vs. Is Yatirim Menkul |
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
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Transaction History View history of all your transactions and understand their impact on performance | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |