Correlation Between Dogus Gayrimenkul and ICBC Turkey
Can any of the company-specific risk be diversified away by investing in both Dogus Gayrimenkul 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 Dogus Gayrimenkul and ICBC Turkey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dogus Gayrimenkul Yatirim and ICBC Turkey Bank, you can compare the effects of market volatilities on Dogus Gayrimenkul 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 Dogus Gayrimenkul with a short position of ICBC Turkey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogus Gayrimenkul and ICBC Turkey.
Diversification Opportunities for Dogus Gayrimenkul and ICBC Turkey
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dogus and ICBC is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Dogus Gayrimenkul Yatirim 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 Dogus Gayrimenkul 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 Dogus Gayrimenkul Yatirim 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 Dogus Gayrimenkul i.e., Dogus Gayrimenkul and ICBC Turkey go up and down completely randomly.
Pair Corralation between Dogus Gayrimenkul and ICBC Turkey
Assuming the 90 days trading horizon Dogus Gayrimenkul Yatirim is expected to under-perform the ICBC Turkey. In addition to that, Dogus Gayrimenkul is 1.02 times more volatile than ICBC Turkey Bank. It trades about -0.32 of its total potential returns per unit of risk. ICBC Turkey Bank is currently generating about -0.21 per unit of volatility. If you would invest 1,422 in ICBC Turkey Bank on December 2, 2024 and sell it today you would lose (196.00) from holding ICBC Turkey Bank or give up 13.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dogus Gayrimenkul Yatirim vs. ICBC Turkey Bank
Performance |
| Timeline |
| Dogus Gayrimenkul Yatirim |
| ICBC Turkey Bank |
Dogus Gayrimenkul and ICBC Turkey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dogus Gayrimenkul and ICBC Turkey
The main advantage of trading using opposite Dogus Gayrimenkul and ICBC Turkey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogus Gayrimenkul 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.| Dogus Gayrimenkul vs. KOC METALURJI | Dogus Gayrimenkul vs. Turkiye Kalkinma Bankasi | Dogus Gayrimenkul vs. Cuhadaroglu Metal Sanayi | Dogus Gayrimenkul vs. Sekerbank TAS |
| ICBC Turkey vs. Koza Anadolu Metal | ICBC Turkey vs. Sodas Sodyum Sanayi | ICBC Turkey vs. KOC METALURJI | ICBC Turkey vs. E Data Teknoloji Pazarlama |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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