Correlation Between ICBC Turkey and MMC Sanayi
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and MMC Sanayi 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 MMC Sanayi 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 MMC Sanayi ve, you can compare the effects of market volatilities on ICBC Turkey and MMC Sanayi 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 MMC Sanayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and MMC Sanayi.
Diversification Opportunities for ICBC Turkey and MMC Sanayi
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICBC and MMC is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and MMC Sanayi ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMC Sanayi ve 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 MMC Sanayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMC Sanayi ve has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and MMC Sanayi go up and down completely randomly.
Pair Corralation between ICBC Turkey and MMC Sanayi
Assuming the 90 days trading horizon ICBC Turkey Bank is expected to under-perform the MMC Sanayi. But the stock apears to be less risky and, when comparing its historical volatility, ICBC Turkey Bank is 2.07 times less risky than MMC Sanayi. The stock trades about -0.04 of its potential returns per unit of risk. The MMC Sanayi ve is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,674 in MMC Sanayi ve on December 4, 2024 and sell it today you would earn a total of 660.00 from holding MMC Sanayi ve or generate 39.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICBC Turkey Bank vs. MMC Sanayi ve
Performance |
| Timeline |
| ICBC Turkey Bank |
| MMC Sanayi ve |
ICBC Turkey and MMC Sanayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and MMC Sanayi
The main advantage of trading using opposite ICBC Turkey and MMC Sanayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, MMC Sanayi 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 MMC Sanayi will offset losses from the drop in MMC Sanayi's long position.| ICBC Turkey vs. Gentas Genel Metal | ICBC Turkey vs. Silverline Endustri ve | ICBC Turkey vs. MEGA METAL | ICBC Turkey vs. Qnb Finansbank AS |
| MMC Sanayi vs. Cuhadaroglu Metal Sanayi | MMC Sanayi vs. KOC METALURJI | MMC Sanayi vs. Koza Anadolu Metal | MMC Sanayi vs. Politeknik Metal 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |