Correlation Between ICBC Turkey and Eminis Ambalaj
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Eminis Ambalaj 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 Eminis Ambalaj 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 Eminis Ambalaj Sanayi, you can compare the effects of market volatilities on ICBC Turkey and Eminis Ambalaj 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 Eminis Ambalaj. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Eminis Ambalaj.
Diversification Opportunities for ICBC Turkey and Eminis Ambalaj
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ICBC and Eminis is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Eminis Ambalaj Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eminis Ambalaj 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 Eminis Ambalaj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eminis Ambalaj Sanayi has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Eminis Ambalaj go up and down completely randomly.
Pair Corralation between ICBC Turkey and Eminis Ambalaj
Assuming the 90 days trading horizon ICBC Turkey Bank is expected to under-perform the Eminis Ambalaj. But the stock apears to be less risky and, when comparing its historical volatility, ICBC Turkey Bank is 3.47 times less risky than Eminis Ambalaj. The stock trades about -0.48 of its potential returns per unit of risk. The Eminis Ambalaj Sanayi is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 25,575 in Eminis Ambalaj Sanayi on November 28, 2024 and sell it today you would earn a total of 6,425 from holding Eminis Ambalaj Sanayi or generate 25.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICBC Turkey Bank vs. Eminis Ambalaj Sanayi
Performance |
| Timeline |
| ICBC Turkey Bank |
| Eminis Ambalaj Sanayi |
ICBC Turkey and Eminis Ambalaj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Eminis Ambalaj
The main advantage of trading using opposite ICBC Turkey and Eminis Ambalaj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Eminis Ambalaj 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 Eminis Ambalaj will offset losses from the drop in Eminis Ambalaj's long position.| ICBC Turkey vs. Bms Birlesik Metal | ICBC Turkey vs. Politeknik Metal Sanayi | ICBC Turkey vs. Turkiye Kalkinma Bankasi | ICBC Turkey vs. Creditwest Faktoring AS |
| Eminis Ambalaj vs. ICBC Turkey Bank | Eminis Ambalaj vs. Politeknik Metal Sanayi | Eminis Ambalaj vs. KOC METALURJI | Eminis Ambalaj vs. Akbank TAS |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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