Correlation Between ICBC Turkey and Silverline Endustri
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Silverline Endustri 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 Silverline Endustri 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 Silverline Endustri ve, you can compare the effects of market volatilities on ICBC Turkey and Silverline Endustri 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 Silverline Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Silverline Endustri.
Diversification Opportunities for ICBC Turkey and Silverline Endustri
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICBC and Silverline is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Silverline Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silverline Endustri 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 Silverline Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silverline Endustri has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Silverline Endustri go up and down completely randomly.
Pair Corralation between ICBC Turkey and Silverline Endustri
Assuming the 90 days trading horizon ICBC Turkey Bank is expected to under-perform the Silverline Endustri. In addition to that, ICBC Turkey is 1.04 times more volatile than Silverline Endustri ve. It trades about -0.13 of its total potential returns per unit of risk. Silverline Endustri ve is currently generating about -0.04 per unit of volatility. If you would invest 1,899 in Silverline Endustri ve on November 2, 2024 and sell it today you would lose (35.00) from holding Silverline Endustri ve or give up 1.84% 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. Silverline Endustri ve
Performance |
| Timeline |
| ICBC Turkey Bank |
| Silverline Endustri |
ICBC Turkey and Silverline Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Silverline Endustri
The main advantage of trading using opposite ICBC Turkey and Silverline Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Silverline Endustri 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 Silverline Endustri will offset losses from the drop in Silverline Endustri's long position.| ICBC Turkey vs. Politeknik Metal Sanayi | ICBC Turkey vs. MEGA METAL | ICBC Turkey vs. Borlease Otomotiv AS | ICBC Turkey vs. Sekerbank TAS |
| Silverline Endustri vs. ICBC Turkey Bank | Silverline Endustri vs. Mackolik Internet Hizmetleri | Silverline Endustri vs. KOC METALURJI | Silverline Endustri 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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