Correlation Between Turkiye Garanti and Galata Wind
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Galata Wind 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 Galata Wind 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 Galata Wind Enerji, you can compare the effects of market volatilities on Turkiye Garanti and Galata Wind 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 Galata Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Galata Wind.
Diversification Opportunities for Turkiye Garanti and Galata Wind
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Galata is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Galata Wind Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galata Wind Enerji 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 Galata Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galata Wind Enerji has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Galata Wind go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Galata Wind
Assuming the 90 days trading horizon Turkiye Garanti is expected to generate 35.06 times less return on investment than Galata Wind. But when comparing it to its historical volatility, Turkiye Garanti Bankasi is 1.03 times less risky than Galata Wind. It trades about 0.0 of its potential returns per unit of risk. Galata Wind Enerji is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,630 in Galata Wind Enerji on September 25, 2024 and sell it today you would earn a total of 380.00 from holding Galata Wind Enerji or generate 14.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
Turkiye Garanti Bankasi vs. Galata Wind Enerji
Performance |
Timeline |
Turkiye Garanti Bankasi |
Galata Wind Enerji |
Turkiye Garanti and Galata Wind Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turkiye Garanti and Galata Wind
The main advantage of trading using opposite Turkiye Garanti and Galata Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Galata Wind 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 Galata Wind will offset losses from the drop in Galata Wind'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 |
Galata Wind vs. Aksa Enerji Uretim | Galata Wind vs. Pamel Yenilenebilir Elektrik | Galata Wind vs. Metemtur Yatrm Enerji |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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