Correlation Between ICBC Turkey and Nurol Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Nurol Gayrimenkul 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 Nurol Gayrimenkul 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 Nurol Gayrimenkul Yatirim, you can compare the effects of market volatilities on ICBC Turkey and Nurol Gayrimenkul 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 Nurol Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Nurol Gayrimenkul.
Diversification Opportunities for ICBC Turkey and Nurol Gayrimenkul
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICBC and Nurol is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Nurol Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nurol Gayrimenkul Yatirim 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 Nurol Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nurol Gayrimenkul Yatirim has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Nurol Gayrimenkul go up and down completely randomly.
Pair Corralation between ICBC Turkey and Nurol Gayrimenkul
Assuming the 90 days trading horizon ICBC Turkey Bank is expected to generate 1.05 times more return on investment than Nurol Gayrimenkul. However, ICBC Turkey is 1.05 times more volatile than Nurol Gayrimenkul Yatirim. It trades about 0.04 of its potential returns per unit of risk. Nurol Gayrimenkul Yatirim is currently generating about 0.02 per unit of risk. If you would invest 970.00 in ICBC Turkey Bank on October 13, 2024 and sell it today you would earn a total of 532.00 from holding ICBC Turkey Bank or generate 54.85% 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. Nurol Gayrimenkul Yatirim
Performance |
| Timeline |
| ICBC Turkey Bank |
| Nurol Gayrimenkul Yatirim |
ICBC Turkey and Nurol Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Nurol Gayrimenkul
The main advantage of trading using opposite ICBC Turkey and Nurol Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Nurol Gayrimenkul 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 Nurol Gayrimenkul will offset losses from the drop in Nurol Gayrimenkul's long position.| ICBC Turkey vs. Koza Anadolu Metal | ICBC Turkey vs. Akbank TAS | ICBC Turkey vs. Borlease Otomotiv AS | ICBC Turkey vs. KOC METALURJI |
| Nurol Gayrimenkul vs. MEGA METAL | Nurol Gayrimenkul vs. Politeknik Metal Sanayi | Nurol Gayrimenkul vs. CEO Event Medya | Nurol Gayrimenkul vs. ICBC Turkey Bank |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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