Correlation Between ICBC Turkey and KOC METALURJI
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and KOC METALURJI 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 KOC METALURJI 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 KOC METALURJI, you can compare the effects of market volatilities on ICBC Turkey and KOC METALURJI 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 KOC METALURJI. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and KOC METALURJI.
Diversification Opportunities for ICBC Turkey and KOC METALURJI
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICBC and KOC is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and KOC METALURJI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOC METALURJI 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 KOC METALURJI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOC METALURJI has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and KOC METALURJI go up and down completely randomly.
Pair Corralation between ICBC Turkey and KOC METALURJI
Assuming the 90 days trading horizon ICBC Turkey Bank is expected to generate 0.73 times more return on investment than KOC METALURJI. However, ICBC Turkey Bank is 1.38 times less risky than KOC METALURJI. It trades about -0.12 of its potential returns per unit of risk. KOC METALURJI is currently generating about -0.2 per unit of risk. If you would invest 1,422 in ICBC Turkey Bank on November 3, 2024 and sell it today you would lose (69.00) from holding ICBC Turkey Bank or give up 4.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICBC Turkey Bank vs. KOC METALURJI
Performance |
| Timeline |
| ICBC Turkey Bank |
| KOC METALURJI |
ICBC Turkey and KOC METALURJI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and KOC METALURJI
The main advantage of trading using opposite ICBC Turkey and KOC METALURJI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, KOC METALURJI 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 KOC METALURJI will offset losses from the drop in KOC METALURJI's long position.| ICBC Turkey vs. KOC METALURJI | ICBC Turkey vs. Bms Birlesik Metal | ICBC Turkey vs. Turkish Airlines | ICBC Turkey vs. Akcansa Cimento Sanayi |
| KOC METALURJI vs. Politeknik Metal Sanayi | KOC METALURJI vs. E Data Teknoloji Pazarlama | KOC METALURJI vs. Silverline Endustri ve | KOC METALURJI vs. Sodas Sodyum Sanayi |
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.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |