Correlation Between Turkiye Garanti and Schweizerische Nationalbank

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

Diversification Opportunities for Turkiye Garanti and Schweizerische Nationalbank

-0.13

Correlation Coefficient

Turkiye Garanti  Schweizerische Nationalbank

Good diversification

The 3 months correlation between Turkiye and Schweizerische is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti Bankasi and Schweizerische Nationalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweizerische Nationalbank 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 Schweizerische Nationalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweizerische Nationalbank has no effect on the direction of Turkiye Garanti i.e., Turkiye Garanti and Schweizerische Nationalbank go up and down completely randomly.

Pair Corralation between Turkiye Garanti and Schweizerische Nationalbank

Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 1.8 times more return on investment than Schweizerische Nationalbank. However, Turkiye Garanti is 1.8 times more volatile than Schweizerische Nationalbank. It trades about 0.05 of its potential returns per unit of risk. Schweizerische Nationalbank is currently generating about -0.09 per unit of risk. If you would invest  330.00  in Turkiye Garanti Bankasi on September 3, 2024 and sell it today you would earn a total of  25.00  from holding Turkiye Garanti Bankasi or generate 7.58% return on investment over 90 days.

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

Turkiye Garanti Bankasi  vs.  Schweizerische Nationalbank

Turkiye Garanti Bankasi

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Garanti Bankasi are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental drivers, Turkiye Garanti may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Schweizerische Nationalbank

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Schweizerische Nationalbank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Turkiye Garanti and Schweizerische Nationalbank

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

The idea behind Turkiye Garanti Bankasi and Schweizerische Nationalbank 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.