Correlation Between Turkiye Garanti and Atlantis Yatirim

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

Diversification Opportunities for Turkiye Garanti and Atlantis Yatirim

-0.06

Correlation Coefficient

Turkiye Garanti  Atlantis Yatirim

Good diversification

The 3 months correlation between Turkiye and Atlantis is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Atlantis Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantis Yatirim Holding 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 Atlantis Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantis Yatirim Holding has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Atlantis Yatirim go up and down completely randomly.

Pair Corralation between Turkiye Garanti and Atlantis Yatirim

Assuming the 90 days trading horizon Turkiye Garanti Bankasi is expected to under-perform the Atlantis Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Garanti Bankasi is 1.47 times less risky than Atlantis Yatirim. The stock trades about -0.04 of its potential returns per unit of risk. The Atlantis Yatirim Holding is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  4,272  in Atlantis Yatirim Holding on October 8, 2024 and sell it today you would earn a total of  328.00  from holding Atlantis Yatirim Holding or generate 7.68% 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.  Atlantis Yatirim Holding

Turkiye Garanti Bankasi

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Garanti Bankasi are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turkiye Garanti demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Atlantis Yatirim Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atlantis Yatirim Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Turkiye Garanti and Atlantis Yatirim

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

The idea behind Turkiye Garanti Bankasi and Atlantis Yatirim Holding 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.