Correlation Between Turkiye Garanti and AK Sigorta

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

Diversification Opportunities for Turkiye Garanti and AK Sigorta

0.0

Correlation Coefficient

Turkiye Garanti  AK Sigorta

Pay attention - limited upside

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

Pair Corralation between Turkiye Garanti and AK Sigorta

If you would invest (100.00) in AK Sigorta AS on December 29, 2024 and sell it today you would earn a total of  100.00  from holding AK Sigorta AS or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Turkiye Garanti Bankasi  vs.  AK Sigorta AS

Turkiye Garanti Bankasi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Turkiye Garanti Bankasi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Turkiye Garanti is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

AK Sigorta AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days AK Sigorta AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, AK Sigorta is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Turkiye Garanti and AK Sigorta

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

The idea behind Turkiye Garanti Bankasi and AK Sigorta AS 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.