Correlation Between Turkiye Garanti and Akenerji Elektrik
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti and Akenerji Elektrik 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 Akenerji Elektrik 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 Akenerji Elektrik Uretim, you can compare the effects of market volatilities on Turkiye Garanti and Akenerji Elektrik 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 Akenerji Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Akenerji Elektrik.
Diversification Opportunities for Turkiye Garanti and Akenerji Elektrik
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Turkiye and Akenerji is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Akenerji Elektrik Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akenerji Elektrik Uretim 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 Akenerji Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akenerji Elektrik Uretim has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Akenerji Elektrik go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Akenerji Elektrik
Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to generate 0.34 times more return on investment than Akenerji Elektrik. However, Turkiye Garanti Bankasi is 2.97 times less risky than Akenerji Elektrik. It trades about 0.42 of its potential returns per unit of risk. Akenerji Elektrik Uretim is currently generating about 0.13 per unit of risk. If you would invest 6,960 in Turkiye Garanti Bankasi on February 3, 2024 and sell it today you would earn a total of 1,535 from holding Turkiye Garanti Bankasi or generate 22.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Turkiye Garanti Bankasi vs. Akenerji Elektrik Uretim
Performance |
Timeline |
Turkiye Garanti Bankasi |
Akenerji Elektrik Uretim |
Turkiye Garanti and Akenerji Elektrik Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turkiye Garanti and Akenerji Elektrik
The main advantage of trading using opposite Turkiye Garanti and Akenerji Elektrik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti position performs unexpectedly, Akenerji Elektrik 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 Akenerji Elektrik will offset losses from the drop in Akenerji Elektrik's long position.Turkiye Garanti vs. Yesil Yatirim Holding | Turkiye Garanti vs. Trend Gayrimenkul Yatirim | Turkiye Garanti vs. Escort Teknoloji Yatirim | Turkiye Garanti vs. Marmaris Altinyunus Turistik |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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