Correlation Between Turkiye Garanti and Commercial International

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

Diversification Opportunities for Turkiye Garanti and Commercial International

-0.63

Correlation Coefficient

Turkiye Garanti  Commercial International

Excellent diversification

The 3 months correlation between Turkiye and Commercial is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Commercial International Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial International 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 Commercial International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial International has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Commercial International go up and down completely randomly.

Pair Corralation between Turkiye Garanti and Commercial International

If you would invest  118.00  in Turkiye Garanti Bankasi on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Turkiye Garanti Bankasi or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	4.76%
Values	Daily Returns

Turkiye Garanti Bankasi  vs.  Commercial International Bank

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. Despite nearly stable fundamental drivers, Turkiye Garanti is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Commercial International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Commercial International Bank has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Turkiye Garanti and Commercial International

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

The idea behind Turkiye Garanti Bankasi and Commercial International Bank 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.