Correlation Between ICBC Turkey and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Gentas Genel 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 Gentas Genel 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 Gentas Genel Metal, you can compare the effects of market volatilities on ICBC Turkey and Gentas Genel 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 Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Gentas Genel.
Diversification Opportunities for ICBC Turkey and Gentas Genel
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICBC and Gentas is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Gentas Genel Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentas Genel Metal 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 Gentas Genel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentas Genel Metal has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Gentas Genel go up and down completely randomly.
Pair Corralation between ICBC Turkey and Gentas Genel
Assuming the 90 days trading horizon ICBC Turkey is expected to generate 21.82 times less return on investment than Gentas Genel. But when comparing it to its historical volatility, ICBC Turkey Bank is 1.28 times less risky than Gentas Genel. It trades about 0.01 of its potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 786.00 in Gentas Genel Metal on November 2, 2024 and sell it today you would earn a total of 299.00 from holding Gentas Genel Metal or generate 38.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICBC Turkey Bank vs. Gentas Genel Metal
Performance |
| Timeline |
| ICBC Turkey Bank |
| Gentas Genel Metal |
ICBC Turkey and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Gentas Genel
The main advantage of trading using opposite ICBC Turkey and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Gentas Genel 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 Gentas Genel will offset losses from the drop in Gentas Genel's long position.| ICBC Turkey vs. Politeknik Metal Sanayi | ICBC Turkey vs. MEGA METAL | ICBC Turkey vs. Borlease Otomotiv AS | ICBC Turkey vs. Sekerbank TAS |
| Gentas Genel vs. Bms Birlesik Metal | Gentas Genel vs. Qnb Finansbank AS | Gentas Genel vs. Cuhadaroglu Metal Sanayi | Gentas Genel vs. CEO Event Medya |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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