Correlation Between Creditwest Faktoring and ICBC Turkey
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring 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 Creditwest Faktoring and ICBC Turkey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creditwest Faktoring AS and ICBC Turkey Bank, you can compare the effects of market volatilities on Creditwest Faktoring 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 Creditwest Faktoring with a short position of ICBC Turkey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and ICBC Turkey.
Diversification Opportunities for Creditwest Faktoring and ICBC Turkey
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Creditwest and ICBC is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS 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 Creditwest Faktoring 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 Creditwest Faktoring AS 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 Creditwest Faktoring i.e., Creditwest Faktoring and ICBC Turkey go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and ICBC Turkey
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 2.19 times more return on investment than ICBC Turkey. However, Creditwest Faktoring is 2.19 times more volatile than ICBC Turkey Bank. It trades about 0.34 of its potential returns per unit of risk. ICBC Turkey Bank is currently generating about 0.2 per unit of risk. If you would invest 574.00 in Creditwest Faktoring AS on August 30, 2024 and sell it today you would earn a total of 194.00 from holding Creditwest Faktoring AS or generate 33.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creditwest Faktoring AS vs. ICBC Turkey Bank
Performance |
| Timeline |
| Creditwest Faktoring |
| ICBC Turkey Bank |
Creditwest Faktoring and ICBC Turkey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and ICBC Turkey
The main advantage of trading using opposite Creditwest Faktoring and ICBC Turkey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring 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.| Creditwest Faktoring vs. Galatasaray Sportif Sinai | Creditwest Faktoring vs. Bms Birlesik Metal | Creditwest Faktoring vs. Koza Anadolu Metal | Creditwest Faktoring vs. Turkish Airlines |
| ICBC Turkey vs. MEGA METAL | ICBC Turkey vs. Turkiye Kalkinma Bankasi | ICBC Turkey vs. Galatasaray Sportif Sinai | ICBC Turkey vs. Cuhadaroglu Metal Sanayi |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |