Correlation Between ICBC Turkey and Akbank TAS
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Akbank TAS 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 Akbank TAS 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 Akbank TAS, you can compare the effects of market volatilities on ICBC Turkey and Akbank TAS 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 Akbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Akbank TAS.
Diversification Opportunities for ICBC Turkey and Akbank TAS
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICBC and Akbank is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Akbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank TAS 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 Akbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbank TAS has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Akbank TAS go up and down completely randomly.
Pair Corralation between ICBC Turkey and Akbank TAS
Assuming the 90 days trading horizon ICBC Turkey Bank is expected to under-perform the Akbank TAS. But the stock apears to be less risky and, when comparing its historical volatility, ICBC Turkey Bank is 1.06 times less risky than Akbank TAS. The stock trades about -0.12 of its potential returns per unit of risk. The Akbank TAS is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 6,620 in Akbank TAS on November 3, 2024 and sell it today you would lose (135.00) from holding Akbank TAS or give up 2.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICBC Turkey Bank vs. Akbank TAS
Performance |
| Timeline |
| ICBC Turkey Bank |
| Akbank TAS |
ICBC Turkey and Akbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Akbank TAS
The main advantage of trading using opposite ICBC Turkey and Akbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Akbank TAS 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 Akbank TAS will offset losses from the drop in Akbank TAS's long position.| ICBC Turkey vs. KOC METALURJI | ICBC Turkey vs. Bms Birlesik Metal | ICBC Turkey vs. Turkish Airlines | ICBC Turkey vs. Akcansa Cimento Sanayi |
| Akbank TAS vs. Turkiye Garanti Bankasi | Akbank TAS vs. Yapi ve Kredi | Akbank TAS vs. Turkiye Is Bankasi | Akbank TAS vs. Koc Holding AS |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |