Correlation Between Gubre Fabrikalari and Turkiye Garanti

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Can any of the company-specific risk be diversified away by investing in both Gubre Fabrikalari and Turkiye Garanti 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 Gubre Fabrikalari and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gubre Fabrikalari TAS and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Gubre Fabrikalari and Turkiye Garanti 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 Gubre Fabrikalari with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gubre Fabrikalari and Turkiye Garanti.

Diversification Opportunities for Gubre Fabrikalari and Turkiye Garanti

GubreTurkiyeDiversified AwayGubreTurkiyeDiversified Away100%
0.9
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Gubre and Turkiye is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Gubre Fabrikalari TAS and Turkiye Garanti Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Garanti Bankasi and Gubre Fabrikalari 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 Gubre Fabrikalari TAS are associated (or correlated) with Turkiye Garanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Garanti Bankasi has no effect on the direction of Gubre Fabrikalari i.e., Gubre Fabrikalari and Turkiye Garanti go up and down completely randomly.

Pair Corralation between Gubre Fabrikalari and Turkiye Garanti

Assuming the 90 days trading horizon Gubre Fabrikalari is expected to generate 2.61 times less return on investment than Turkiye Garanti. In addition to that, Gubre Fabrikalari is 1.19 times more volatile than Turkiye Garanti Bankasi. It trades about 0.05 of its total potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.15 per unit of volatility. If you would invest  1,967  in Turkiye Garanti Bankasi on October 31, 2024 and sell it today you would earn a total of  11,583  from holding Turkiye Garanti Bankasi or generate 588.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy99.8%
ValuesDaily Returns

Gubre Fabrikalari TAS  vs.  Turkiye Garanti Bankasi

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -1001020304050
JavaScript chart by amCharts 3.21.15GUBRF GARAN
       Timeline  
Gubre Fabrikalari TAS 

Risk-Adjusted Performance

18 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Gubre Fabrikalari TAS are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Gubre Fabrikalari demonstrated solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanJan210220230240250260270280290
Turkiye Garanti Bankasi 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Garanti Bankasi are ranked lower than 14 (%) 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.
JavaScript chart by amCharts 3.21.15DecJanJan100105110115120125130135140

Gubre Fabrikalari and Turkiye Garanti Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.01-4.53-3.05-1.58-0.11.583.264.956.648.33 0.020.040.060.08
JavaScript chart by amCharts 3.21.15GUBRF GARAN
       Returns  

Pair Trading with Gubre Fabrikalari and Turkiye Garanti

The main advantage of trading using opposite Gubre Fabrikalari and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gubre Fabrikalari position performs unexpectedly, Turkiye Garanti 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 Turkiye Garanti will offset losses from the drop in Turkiye Garanti's long position.
The idea behind Gubre Fabrikalari TAS and Turkiye Garanti Bankasi 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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