Correlation Between Halk Gayrimenkul and ICBC Turkey
Can any of the company-specific risk be diversified away by investing in both Halk 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 Halk 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 Halk Gayrimenkul Yatirim and ICBC Turkey Bank, you can compare the effects of market volatilities on Halk 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 Halk Gayrimenkul with a short position of ICBC Turkey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halk Gayrimenkul and ICBC Turkey.
Diversification Opportunities for Halk Gayrimenkul and ICBC Turkey
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Halk and ICBC is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Halk 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 Halk 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 Halk 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 Halk Gayrimenkul i.e., Halk Gayrimenkul and ICBC Turkey go up and down completely randomly.
Pair Corralation between Halk Gayrimenkul and ICBC Turkey
Assuming the 90 days trading horizon Halk Gayrimenkul is expected to generate 1.18 times less return on investment than ICBC Turkey. In addition to that, Halk Gayrimenkul is 1.6 times more volatile than ICBC Turkey Bank. It trades about 0.02 of its total potential returns per unit of risk. ICBC Turkey Bank is currently generating about 0.04 per unit of volatility. If you would invest 999.00 in ICBC Turkey Bank on August 31, 2024 and sell it today you would earn a total of 410.00 from holding ICBC Turkey Bank or generate 41.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Halk Gayrimenkul Yatirim vs. ICBC Turkey Bank
Performance |
| Timeline |
| Halk Gayrimenkul Yatirim |
| ICBC Turkey Bank |
Halk Gayrimenkul and ICBC Turkey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halk Gayrimenkul and ICBC Turkey
The main advantage of trading using opposite Halk Gayrimenkul and ICBC Turkey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halk 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.| Halk Gayrimenkul vs. Koza Anadolu Metal | Halk Gayrimenkul vs. ICBC Turkey Bank | Halk Gayrimenkul vs. Datagate Bilgisayar Malzemeleri | Halk Gayrimenkul vs. Politeknik 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |