Correlation Between ICBC Turkey and Is Yatirim
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Is Yatirim 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 Is Yatirim 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 Is Yatirim Ortakligi, you can compare the effects of market volatilities on ICBC Turkey and Is Yatirim 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 Is Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Is Yatirim.
Diversification Opportunities for ICBC Turkey and Is Yatirim
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICBC and ISYAT is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Is Yatirim Ortakligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Yatirim Ortakligi 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 Is Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Yatirim Ortakligi has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Is Yatirim go up and down completely randomly.
Pair Corralation between ICBC Turkey and Is Yatirim
Assuming the 90 days trading horizon ICBC Turkey is expected to generate 1.12 times less return on investment than Is Yatirim. But when comparing it to its historical volatility, ICBC Turkey Bank is 1.13 times less risky than Is Yatirim. It trades about 0.07 of its potential returns per unit of risk. Is Yatirim Ortakligi is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 448.00 in Is Yatirim Ortakligi on September 2, 2024 and sell it today you would earn a total of 414.00 from holding Is Yatirim Ortakligi or generate 92.41% 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. Is Yatirim Ortakligi
Performance |
| Timeline |
| ICBC Turkey Bank |
| Is Yatirim Ortakligi |
ICBC Turkey and Is Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Is Yatirim
The main advantage of trading using opposite ICBC Turkey and Is Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Is Yatirim 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 Is Yatirim will offset losses from the drop in Is Yatirim's long position.| ICBC Turkey vs. Creditwest Faktoring AS | ICBC Turkey vs. Bms Birlesik Metal | ICBC Turkey vs. Galatasaray Sportif Sinai | ICBC Turkey vs. Cuhadaroglu Metal Sanayi |
| Is Yatirim vs. Silverline Endustri ve | Is Yatirim vs. Cuhadaroglu Metal Sanayi | Is Yatirim vs. Galatasaray Sportif Sinai | Is Yatirim vs. Gentas Genel 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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