Correlation Between Turkiye Garanti and ATT
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and ATT 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 ATT 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 ATT Inc, you can compare the effects of market volatilities on Turkiye Garanti and ATT 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 ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and ATT.
Diversification Opportunities for Turkiye Garanti and ATT
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Turkiye and ATT is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and ATT go up and down completely randomly.
Pair Corralation between Turkiye Garanti and ATT
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 6.02 times more return on investment than ATT. However, Turkiye Garanti is 6.02 times more volatile than ATT Inc. It trades about 0.15 of its potential returns per unit of risk. ATT Inc is currently generating about 0.0 per unit of risk. If you would invest 196.00 in Turkiye Garanti Bankasi on January 25, 2024 and sell it today you would earn a total of 37.00 from holding Turkiye Garanti Bankasi or generate 18.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Turkiye Garanti Bankasi vs. ATT Inc
Performance |
Timeline |
Turkiye Garanti Bankasi |
ATT Inc |
Turkiye Garanti and ATT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turkiye Garanti and ATT
The main advantage of trading using opposite Turkiye Garanti and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT's long position.Turkiye Garanti vs. Bank Rakyat | Turkiye Garanti vs. Lloyds Banking Group | Turkiye Garanti vs. Western Alliance Bancorporation | Turkiye Garanti vs. JAPAN POST BANK |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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