Correlation Between Territorial Bancorp and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Territorial Bancorp and Turkiye Garanti 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 Territorial Bancorp and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Territorial Bancorp and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Territorial Bancorp and Turkiye Garanti 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 Territorial Bancorp with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Territorial Bancorp and Turkiye Garanti.
Diversification Opportunities for Territorial Bancorp and Turkiye Garanti
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Territorial and Turkiye is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Territorial Bancorp and Turkiye Garanti Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Garanti Bankasi and Territorial Bancorp 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 Territorial Bancorp are associated (or correlated) with Turkiye Garanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Garanti Bankasi has no effect on the direction of Territorial Bancorp i.e., Territorial Bancorp and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Territorial Bancorp and Turkiye Garanti
Given the investment horizon of 90 days Territorial Bancorp is expected to under-perform the Turkiye Garanti. But the stock apears to be less risky and, when comparing its historical volatility, Territorial Bancorp is 2.61 times less risky than Turkiye Garanti. The stock trades about -0.06 of its potential returns per unit of risk. The Turkiye Garanti Bankasi is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 190.00 in Turkiye Garanti Bankasi on February 22, 2024 and sell it today you would earn a total of 114.00 from holding Turkiye Garanti Bankasi or generate 60.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Territorial Bancorp vs. Turkiye Garanti Bankasi
Performance |
Timeline |
Territorial Bancorp |
Turkiye Garanti Bankasi |
Territorial Bancorp and Turkiye Garanti Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Territorial Bancorp and Turkiye Garanti
The main advantage of trading using opposite Territorial Bancorp and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Territorial Bancorp position performs unexpectedly, Turkiye Garanti 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 Turkiye Garanti will offset losses from the drop in Turkiye Garanti's long position.Territorial Bancorp vs. JPMorgan Chase Co | Territorial Bancorp vs. Citigroup | Territorial Bancorp vs. Wells Fargo | Territorial Bancorp vs. Toronto Dominion Bank |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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