Correlation Between Turkiye Garanti and Ege Profil
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Ege Profil 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 Ege Profil 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 Ege Profil Ticaret, you can compare the effects of market volatilities on Turkiye Garanti and Ege Profil 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 Ege Profil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Ege Profil.
Diversification Opportunities for Turkiye Garanti and Ege Profil
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Ege is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Ege Profil Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Profil Ticaret 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 Ege Profil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Profil Ticaret has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Ege Profil go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Ege Profil
Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 1.3 times more return on investment than Ege Profil. However, Turkiye Garanti is 1.3 times more volatile than Ege Profil Ticaret. It trades about 0.05 of its potential returns per unit of risk. Ege Profil Ticaret is currently generating about -0.07 per unit of risk. If you would invest 11,300 in Turkiye Garanti Bankasi on September 24, 2024 and sell it today you would earn a total of 1,240 from holding Turkiye Garanti Bankasi or generate 10.97% 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. Ege Profil Ticaret
Performance |
Timeline |
Turkiye Garanti Bankasi |
Ege Profil Ticaret |
Turkiye Garanti and Ege Profil Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turkiye Garanti and Ege Profil
The main advantage of trading using opposite Turkiye Garanti and Ege Profil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Ege Profil 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 Ege Profil will offset losses from the drop in Ege Profil'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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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