Correlation Between Marka Yatirim and Turkiye Garanti

Can any of the company-specific risk be diversified away by investing in both Marka Yatirim 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 Marka Yatirim and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Marka Yatirim Holding and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Marka Yatirim 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 Marka Yatirim with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marka Yatirim and Turkiye Garanti.

Diversification Opportunities for Marka Yatirim and Turkiye Garanti

-0.81

Correlation Coefficient

Marka Yatirim  Turkiye Garanti

Pay attention - limited upside

The 3 months correlation between Marka and Turkiye is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Marka Yatirim Holding 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 Marka Yatirim 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 Marka Yatirim Holding 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 Marka Yatirim i.e., Marka Yatirim and Turkiye Garanti go up and down completely randomly.

Pair Corralation between Marka Yatirim and Turkiye Garanti

Assuming the 90 days trading horizon Marka Yatirim Holding is expected to generate 1.91 times more return on investment than Turkiye Garanti. However, Marka Yatirim is 1.91 times more volatile than Turkiye Garanti Bankasi. It trades about 0.12 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.14 per unit of risk. If you would invest  391.00  in Marka Yatirim Holding on October 21, 2024 and sell it today you would earn a total of  4,509  from holding Marka Yatirim Holding or generate 1153.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Marka Yatirim Holding  vs.  Turkiye Garanti Bankasi

Marka Yatirim Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marka Yatirim Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Turkiye Garanti Bankasi

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Garanti Bankasi are ranked lower than 12 (%) 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.

Pair Trading with Marka Yatirim and Turkiye Garanti

The main advantage of trading using opposite Marka Yatirim and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marka Yatirim 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 Marka Yatirim Holding 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.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.