Correlation Between ICBC Turkey and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Galatasaray Sportif 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 Galatasaray Sportif 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 Galatasaray Sportif Sinai, you can compare the effects of market volatilities on ICBC Turkey and Galatasaray Sportif 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 Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Galatasaray Sportif.
Diversification Opportunities for ICBC Turkey and Galatasaray Sportif
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICBC and Galatasaray is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Galatasaray Sportif Sinai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galatasaray Sportif Sinai 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 Galatasaray Sportif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galatasaray Sportif Sinai has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between ICBC Turkey and Galatasaray Sportif
Assuming the 90 days trading horizon ICBC Turkey Bank is expected to generate 1.04 times more return on investment than Galatasaray Sportif. However, ICBC Turkey is 1.04 times more volatile than Galatasaray Sportif Sinai. It trades about -0.16 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about -0.21 per unit of risk. If you would invest 1,442 in ICBC Turkey Bank on November 4, 2024 and sell it today you would lose (89.00) from holding ICBC Turkey Bank or give up 6.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICBC Turkey Bank vs. Galatasaray Sportif Sinai
Performance |
| Timeline |
| ICBC Turkey Bank |
| Galatasaray Sportif Sinai |
ICBC Turkey and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Galatasaray Sportif
The main advantage of trading using opposite ICBC Turkey and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Galatasaray Sportif 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 Galatasaray Sportif will offset losses from the drop in Galatasaray Sportif's long position.| ICBC Turkey vs. Mackolik Internet Hizmetleri | ICBC Turkey vs. Qnb Finansbank AS | ICBC Turkey vs. KOC METALURJI | ICBC Turkey vs. Gentas Genel Metal |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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