Correlation Between Turkiye Garanti and Allena Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Allena Pharmaceuticals 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 Allena Pharmaceuticals 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 Allena Pharmaceuticals, you can compare the effects of market volatilities on Turkiye Garanti and Allena Pharmaceuticals 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 Allena Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Allena Pharmaceuticals.

Diversification Opportunities for Turkiye Garanti and Allena Pharmaceuticals

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Correlation Coefficient

Turkiye Garanti  Allena Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between Turkiye and Allena is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Allena Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allena Pharmaceuticals 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 Allena Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allena Pharmaceuticals has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Allena Pharmaceuticals go up and down completely randomly.

Pair Corralation between Turkiye Garanti and Allena Pharmaceuticals

If you would invest  186.00  in Turkiye Garanti Bankasi on January 19, 2024 and sell it today you would earn a total of  23.00  from holding Turkiye Garanti Bankasi or generate 12.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Turkiye Garanti Bankasi  vs.  Allena Pharmaceuticals

Turkiye Garanti Bankasi

Risk-Adjusted Performance

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Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Garanti Bankasi are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental drivers, Turkiye Garanti may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Allena Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allena Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Allena Pharmaceuticals is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Turkiye Garanti and Allena Pharmaceuticals

The main advantage of trading using opposite Turkiye Garanti and Allena Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Allena Pharmaceuticals 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 Allena Pharmaceuticals will offset losses from the drop in Allena Pharmaceuticals' long position.

The idea behind Turkiye Garanti Bankasi and Allena Pharmaceuticals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.