Correlation Between Turkiye Garanti and Alkim Alkali
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Alkim Alkali 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 Alkim Alkali 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 Alkim Alkali Kimya, you can compare the effects of market volatilities on Turkiye Garanti and Alkim Alkali 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 Alkim Alkali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Alkim Alkali.
Diversification Opportunities for Turkiye Garanti and Alkim Alkali
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Alkim is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Alkim Alkali Kimya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkim Alkali Kimya 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 Alkim Alkali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkim Alkali Kimya has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Alkim Alkali go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Alkim Alkali
Assuming the 90 days trading horizon Turkiye Garanti is expected to generate 1.56 times less return on investment than Alkim Alkali. But when comparing it to its historical volatility, Turkiye Garanti Bankasi is 1.37 times less risky than Alkim Alkali. It trades about 0.35 of its potential returns per unit of risk. Alkim Alkali Kimya is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 3,000 in Alkim Alkali Kimya on February 4, 2024 and sell it today you would earn a total of 848.00 from holding Alkim Alkali Kimya or generate 28.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Turkiye Garanti Bankasi vs. Alkim Alkali Kimya
Performance |
Timeline |
Turkiye Garanti Bankasi |
Alkim Alkali Kimya |
Turkiye Garanti and Alkim Alkali Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turkiye Garanti and Alkim Alkali
The main advantage of trading using opposite Turkiye Garanti and Alkim Alkali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Alkim Alkali 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 Alkim Alkali will offset losses from the drop in Alkim Alkali's long position.Turkiye Garanti vs. Trend Gayrimenkul Yatirim | Turkiye Garanti vs. Escort Teknoloji Yatirim | Turkiye Garanti vs. Marmaris Altinyunus Turistik | Turkiye Garanti vs. Milpa Ticari ve |
Alkim Alkali vs. Yaprak Sut ve | Alkim Alkali vs. Flap Kongre Toplanti | Alkim Alkali vs. Trend Gayrimenkul Yatirim | Alkim Alkali vs. Ege Endustri ve |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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