Correlation Between ICBC Turkey and E Data
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and E Data 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 E Data 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 E Data Teknoloji Pazarlama, you can compare the effects of market volatilities on ICBC Turkey and E Data 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 E Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and E Data.
Diversification Opportunities for ICBC Turkey and E Data
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ICBC and EDATA is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and E Data Teknoloji Pazarlama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Data Teknoloji 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 E Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Data Teknoloji has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and E Data go up and down completely randomly.
Pair Corralation between ICBC Turkey and E Data
Assuming the 90 days trading horizon ICBC Turkey Bank is expected to generate 0.98 times more return on investment than E Data. However, ICBC Turkey Bank is 1.02 times less risky than E Data. It trades about 0.2 of its potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about -0.17 per unit of risk. If you would invest 1,302 in ICBC Turkey Bank on August 30, 2024 and sell it today you would earn a total of 108.00 from holding ICBC Turkey Bank or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICBC Turkey Bank vs. E Data Teknoloji Pazarlama
Performance |
| Timeline |
| ICBC Turkey Bank |
| E Data Teknoloji |
ICBC Turkey and E Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and E Data
The main advantage of trading using opposite ICBC Turkey and E Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, E Data 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 E Data will offset losses from the drop in E Data's long position.| ICBC Turkey vs. MEGA METAL | ICBC Turkey vs. Turkiye Kalkinma Bankasi | ICBC Turkey vs. Galatasaray Sportif Sinai | ICBC Turkey vs. Cuhadaroglu Metal Sanayi |
| E Data vs. Silverline Endustri ve | E Data vs. MEGA METAL | E Data vs. Akbank TAS | E Data vs. Mackolik Internet Hizmetleri |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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