Correlation Between Galatasaray Sportif and ICBC Turkey
Can any of the company-specific risk be diversified away by investing in both Galatasaray Sportif 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 Galatasaray Sportif and ICBC Turkey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galatasaray Sportif Sinai and ICBC Turkey Bank, you can compare the effects of market volatilities on Galatasaray Sportif 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 Galatasaray Sportif with a short position of ICBC Turkey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galatasaray Sportif and ICBC Turkey.
Diversification Opportunities for Galatasaray Sportif and ICBC Turkey
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Galatasaray and ICBC is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai 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 Galatasaray Sportif 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 Galatasaray Sportif Sinai 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 Galatasaray Sportif i.e., Galatasaray Sportif and ICBC Turkey go up and down completely randomly.
Pair Corralation between Galatasaray Sportif and ICBC Turkey
Assuming the 90 days trading horizon Galatasaray Sportif Sinai is expected to under-perform the ICBC Turkey. But the stock apears to be less risky and, when comparing its historical volatility, Galatasaray Sportif Sinai is 1.04 times less risky than ICBC Turkey. The stock trades about -0.21 of its potential returns per unit of risk. The ICBC Turkey Bank is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 1,442 in ICBC Turkey Bank on November 4, 2024 and sell it today you would lose (89.00) from holding ICBC Turkey Bank or give up 6.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galatasaray Sportif Sinai vs. ICBC Turkey Bank
Performance |
| Timeline |
| Galatasaray Sportif Sinai |
| ICBC Turkey Bank |
Galatasaray Sportif and ICBC Turkey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galatasaray Sportif and ICBC Turkey
The main advantage of trading using opposite Galatasaray Sportif and ICBC Turkey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galatasaray Sportif 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.| Galatasaray Sportif vs. Borlease Otomotiv AS | Galatasaray Sportif vs. Akcansa Cimento Sanayi | Galatasaray Sportif vs. Sodas Sodyum Sanayi | Galatasaray Sportif vs. Datagate Bilgisayar Malzemeleri |
| ICBC Turkey vs. Mackolik Internet Hizmetleri | ICBC Turkey vs. Qnb Finansbank AS | ICBC Turkey vs. KOC METALURJI | ICBC Turkey vs. Gentas Genel Metal |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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