Correlation Between Ayes Celik and ICBC Turkey
Can any of the company-specific risk be diversified away by investing in both Ayes Celik and ICBC Turkey 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 Ayes Celik and ICBC Turkey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ayes Celik Hasir and ICBC Turkey Bank, you can compare the effects of market volatilities on Ayes Celik and ICBC Turkey 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 Ayes Celik with a short position of ICBC Turkey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ayes Celik and ICBC Turkey.
Diversification Opportunities for Ayes Celik and ICBC Turkey
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ayes and ICBC is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ayes Celik Hasir and ICBC Turkey Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICBC Turkey Bank and Ayes Celik 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 Ayes Celik Hasir are associated (or correlated) with ICBC Turkey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICBC Turkey Bank has no effect on the direction of Ayes Celik i.e., Ayes Celik and ICBC Turkey go up and down completely randomly.
Pair Corralation between Ayes Celik and ICBC Turkey
Assuming the 90 days trading horizon Ayes Celik Hasir is expected to under-perform the ICBC Turkey. But the stock apears to be less risky and, when comparing its historical volatility, Ayes Celik Hasir is 1.41 times less risky than ICBC Turkey. The stock trades about -0.22 of its potential returns per unit of risk. The ICBC Turkey Bank is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,366 in ICBC Turkey Bank on September 13, 2024 and sell it today you would earn a total of 39.00 from holding ICBC Turkey Bank or generate 2.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ayes Celik Hasir vs. ICBC Turkey Bank
Performance |
Timeline |
Ayes Celik Hasir |
ICBC Turkey Bank |
Ayes Celik and ICBC Turkey Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ayes Celik and ICBC Turkey
The main advantage of trading using opposite Ayes Celik and ICBC Turkey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ayes Celik position performs unexpectedly, ICBC Turkey 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 ICBC Turkey will offset losses from the drop in ICBC Turkey's long position.Ayes Celik vs. Borlease Otomotiv AS | Ayes Celik vs. MEGA METAL | Ayes Celik vs. Politeknik Metal Sanayi | Ayes Celik vs. Sodas Sodyum Sanayi |
ICBC Turkey vs. Gentas Genel Metal | ICBC Turkey vs. Borlease Otomotiv AS | ICBC Turkey vs. Creditwest Faktoring AS | ICBC Turkey vs. Mackolik Internet Hizmetleri |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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