Correlation Between ICBC Turkey and Burcelik Vana
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Burcelik Vana 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 Burcelik Vana 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 Burcelik Vana Sanayi, you can compare the effects of market volatilities on ICBC Turkey and Burcelik Vana 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 Burcelik Vana. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Burcelik Vana.
Diversification Opportunities for ICBC Turkey and Burcelik Vana
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ICBC and Burcelik is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Burcelik Vana Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burcelik Vana Sanayi 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 Burcelik Vana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burcelik Vana Sanayi has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Burcelik Vana go up and down completely randomly.
Pair Corralation between ICBC Turkey and Burcelik Vana
Assuming the 90 days trading horizon ICBC Turkey Bank is expected to generate 1.57 times more return on investment than Burcelik Vana. However, ICBC Turkey is 1.57 times more volatile than Burcelik Vana Sanayi. It trades about 0.04 of its potential returns per unit of risk. Burcelik Vana Sanayi is currently generating about -0.14 per unit of risk. If you would invest 1,413 in ICBC Turkey Bank on October 29, 2024 and sell it today you would earn a total of 15.00 from holding ICBC Turkey Bank or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICBC Turkey Bank vs. Burcelik Vana Sanayi
Performance |
| Timeline |
| ICBC Turkey Bank |
| Burcelik Vana Sanayi |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ICBC Turkey and Burcelik Vana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Burcelik Vana
The main advantage of trading using opposite ICBC Turkey and Burcelik Vana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Burcelik Vana 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 Burcelik Vana will offset losses from the drop in Burcelik Vana's long position.| ICBC Turkey vs. Koza Anadolu Metal | ICBC Turkey vs. KOC METALURJI | ICBC Turkey vs. Mackolik Internet Hizmetleri | ICBC Turkey vs. Sodas Sodyum Sanayi |
| Burcelik Vana vs. MEGA METAL | Burcelik Vana vs. Gentas Genel Metal | Burcelik Vana vs. Sodas Sodyum Sanayi | Burcelik Vana vs. Koza Anadolu 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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