Correlation Between Turkiye Garanti and Bursa Cimento
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Bursa Cimento 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 Bursa Cimento 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 Bursa Cimento Fabrikasi, you can compare the effects of market volatilities on Turkiye Garanti and Bursa Cimento 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 Bursa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Bursa Cimento.
Diversification Opportunities for Turkiye Garanti and Bursa Cimento
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Turkiye and Bursa is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Bursa Cimento Fabrikasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bursa Cimento Fabrikasi 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 Bursa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bursa Cimento Fabrikasi has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Bursa Cimento go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Bursa Cimento
Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 1.13 times more return on investment than Bursa Cimento. However, Turkiye Garanti is 1.13 times more volatile than Bursa Cimento Fabrikasi. It trades about 0.15 of its potential returns per unit of risk. Bursa Cimento Fabrikasi is currently generating about 0.04 per unit of risk. If you would invest 5,580 in Turkiye Garanti Bankasi on September 24, 2024 and sell it today you would earn a total of 6,960 from holding Turkiye Garanti Bankasi or generate 124.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Turkiye Garanti Bankasi vs. Bursa Cimento Fabrikasi
Performance |
Timeline |
Turkiye Garanti Bankasi |
Bursa Cimento Fabrikasi |
Turkiye Garanti and Bursa Cimento Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turkiye Garanti and Bursa Cimento
The main advantage of trading using opposite Turkiye Garanti and Bursa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Bursa Cimento 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 Bursa Cimento will offset losses from the drop in Bursa Cimento's long position.Turkiye Garanti vs. Aksa Akrilik Kimya | Turkiye Garanti vs. Tofas Turk Otomobil | Turkiye Garanti vs. AK Sigorta AS | Turkiye Garanti vs. Is Yatirim Menkul |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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