Correlation Between Rithm Capital and Turkiye Garanti

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

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

Diversification Opportunities for Rithm Capital and Turkiye Garanti

0.67

Correlation Coefficient

Rithm Capital  Turkiye Garanti

Poor diversification

The 3 months correlation between Rithm and Turkiye is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Capital Corp 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 Rithm Capital 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 Rithm Capital Corp 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 Rithm Capital i.e., Rithm Capital and Turkiye Garanti go up and down completely randomly.

Pair Corralation between Rithm Capital and Turkiye Garanti

If you would invest  2,462  in Rithm Capital Corp on October 25, 2024 and sell it today you would earn a total of  41.00  from holding Rithm Capital Corp or generate 1.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	5.56%
Values	Daily Returns

Rithm Capital Corp  vs.  Turkiye Garanti Bankasi

Rithm Capital Corp

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Rithm Capital Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Rithm Capital is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Turkiye Garanti Bankasi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkiye Garanti Bankasi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Turkiye Garanti is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Rithm Capital and Turkiye Garanti

The main advantage of trading using opposite Rithm Capital and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Capital 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 Rithm Capital Corp 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.