Correlation Between ICBC Turkey and Baticim Bati
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Baticim Bati 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 Baticim Bati 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 Baticim Bati Anadolu, you can compare the effects of market volatilities on ICBC Turkey and Baticim Bati 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 Baticim Bati. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Baticim Bati.
Diversification Opportunities for ICBC Turkey and Baticim Bati
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICBC and Baticim is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Baticim Bati Anadolu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baticim Bati Anadolu 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 Baticim Bati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baticim Bati Anadolu has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Baticim Bati go up and down completely randomly.
Pair Corralation between ICBC Turkey and Baticim Bati
Assuming the 90 days trading horizon ICBC Turkey is expected to generate 2.28 times less return on investment than Baticim Bati. But when comparing it to its historical volatility, ICBC Turkey Bank is 1.11 times less risky than Baticim Bati. It trades about 0.04 of its potential returns per unit of risk. Baticim Bati Anadolu is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,460 in Baticim Bati Anadolu on September 13, 2024 and sell it today you would earn a total of 9,530 from holding Baticim Bati Anadolu or generate 213.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICBC Turkey Bank vs. Baticim Bati Anadolu
Performance |
| Timeline |
| ICBC Turkey Bank |
| Baticim Bati Anadolu |
ICBC Turkey and Baticim Bati Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Baticim Bati
The main advantage of trading using opposite ICBC Turkey and Baticim Bati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Baticim Bati 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 Baticim Bati will offset losses from the drop in Baticim Bati'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 |
| Baticim Bati vs. Bms Birlesik Metal | Baticim Bati vs. MEGA METAL | Baticim Bati vs. ICBC Turkey Bank | Baticim Bati vs. Trabzonspor Sportif Yatirim |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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