Correlation Between Turkiye Garanti and Anadolu Hayat

Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Anadolu Hayat 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 Garanti and Anadolu Hayat into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Turkiye Garanti Bankasi and Anadolu Hayat Emeklilik, you can compare the effects of market volatilities on Turkiye Garanti and Anadolu Hayat 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 Garanti with a short position of Anadolu Hayat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Anadolu Hayat.

Diversification Opportunities for Turkiye Garanti and Anadolu Hayat

0.66

Correlation Coefficient

Turkiye Garanti  Anadolu Hayat

Poor diversification

The 3 months correlation between Turkiye and Anadolu is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Anadolu Hayat Emeklilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anadolu Hayat Emeklilik and Turkiye Garanti 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 Garanti Bankasi are associated (or correlated) with Anadolu Hayat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anadolu Hayat Emeklilik has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Anadolu Hayat go up and down completely randomly.

Pair Corralation between Turkiye Garanti and Anadolu Hayat

Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 0.92 times more return on investment than Anadolu Hayat. However, Turkiye Garanti Bankasi is 1.09 times less risky than Anadolu Hayat. It trades about 0.04 of its potential returns per unit of risk. Anadolu Hayat Emeklilik is currently generating about -0.06 per unit of risk. If you would invest  12,060  in Turkiye Garanti Bankasi on September 22, 2024 and sell it today you would earn a total of  480.00  from holding Turkiye Garanti Bankasi or generate 3.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Turkiye Garanti Bankasi  vs.  Anadolu Hayat Emeklilik

Turkiye Garanti Bankasi

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Garanti Bankasi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Turkiye Garanti is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Anadolu Hayat Emeklilik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anadolu Hayat Emeklilik has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Turkiye Garanti and Anadolu Hayat

The main advantage of trading using opposite Turkiye Garanti and Anadolu Hayat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Anadolu Hayat 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 Anadolu Hayat will offset losses from the drop in Anadolu Hayat's long position.

The idea behind Turkiye Garanti Bankasi and Anadolu Hayat Emeklilik pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..