Correlation Between ICBC Turkey and Adel Kalemcilik
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Adel Kalemcilik 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 ICBC Turkey and Adel Kalemcilik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICBC Turkey Bank and Adel Kalemcilik Ticaret, you can compare the effects of market volatilities on ICBC Turkey and Adel Kalemcilik 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 ICBC Turkey with a short position of Adel Kalemcilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Adel Kalemcilik.
Diversification Opportunities for ICBC Turkey and Adel Kalemcilik
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICBC and Adel is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Adel Kalemcilik Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adel Kalemcilik Ticaret and ICBC Turkey 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 ICBC Turkey Bank are associated (or correlated) with Adel Kalemcilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adel Kalemcilik Ticaret has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Adel Kalemcilik go up and down completely randomly.
Pair Corralation between ICBC Turkey and Adel Kalemcilik
Assuming the 90 days trading horizon ICBC Turkey Bank is expected to generate 0.81 times more return on investment than Adel Kalemcilik. However, ICBC Turkey Bank is 1.23 times less risky than Adel Kalemcilik. It trades about 0.16 of its potential returns per unit of risk. Adel Kalemcilik Ticaret is currently generating about 0.02 per unit of risk. If you would invest 1,274 in ICBC Turkey Bank on September 13, 2024 and sell it today you would earn a total of 191.00 from holding ICBC Turkey Bank or generate 14.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
ICBC Turkey Bank vs. Adel Kalemcilik Ticaret
Performance |
| Timeline |
| ICBC Turkey Bank |
| Adel Kalemcilik Ticaret |
ICBC Turkey and Adel Kalemcilik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Adel Kalemcilik
The main advantage of trading using opposite ICBC Turkey and Adel Kalemcilik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Adel Kalemcilik 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 Adel Kalemcilik will offset losses from the drop in Adel Kalemcilik's long position.| ICBC Turkey vs. Creditwest Faktoring AS | ICBC Turkey vs. MEGA METAL | ICBC Turkey vs. Cuhadaroglu Metal Sanayi | ICBC Turkey vs. Gentas Genel Metal |
| Adel Kalemcilik vs. Koza Anadolu Metal | Adel Kalemcilik vs. CEO Event Medya | Adel Kalemcilik vs. Trabzonspor Sportif Yatirim | Adel Kalemcilik vs. ICBC Turkey Bank |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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