Correlation Between PT Bank and Akbank Turk
Can any of the company-specific risk be diversified away by investing in both PT Bank and Akbank Turk 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 PT Bank and Akbank Turk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Central and Akbank Turk Anonim, you can compare the effects of market volatilities on PT Bank and Akbank Turk 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 PT Bank with a short position of Akbank Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Akbank Turk.
Diversification Opportunities for PT Bank and Akbank Turk
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between PBCRF and Akbank is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Akbank Turk Anonim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank Turk Anonim and PT Bank 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 PT Bank Central are associated (or correlated) with Akbank Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbank Turk Anonim has no effect on the direction of PT Bank i.e., PT Bank and Akbank Turk go up and down completely randomly.
Pair Corralation between PT Bank and Akbank Turk
Assuming the 90 days horizon PT Bank is expected to generate 1.5 times less return on investment than Akbank Turk. In addition to that, PT Bank is 1.21 times more volatile than Akbank Turk Anonim. It trades about 0.03 of its total potential returns per unit of risk. Akbank Turk Anonim is currently generating about 0.05 per unit of volatility. If you would invest 261.00 in Akbank Turk Anonim on September 12, 2024 and sell it today you would earn a total of 94.00 from holding Akbank Turk Anonim or generate 36.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.78% |
Values | Daily Returns |
PT Bank Central vs. Akbank Turk Anonim
Performance |
Timeline |
PT Bank Central |
Akbank Turk Anonim |
PT Bank and Akbank Turk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Bank and Akbank Turk
The main advantage of trading using opposite PT Bank and Akbank Turk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Akbank Turk 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 Akbank Turk will offset losses from the drop in Akbank Turk's long position.PT Bank vs. Commercial International Bank | PT Bank vs. Caixabank SA ADR | PT Bank vs. Bank Rakyat | PT Bank vs. Lloyds Banking Group |
Akbank Turk vs. Commercial International Bank | Akbank Turk vs. Kasikornbank Public Co | Akbank Turk vs. PT Bank Central | Akbank Turk vs. PT Bank Rakyat |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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