Correlation Between ICBC Turkey and Smart Gunes
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Smart Gunes 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 Smart Gunes 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 Smart Gunes Enerjisi, you can compare the effects of market volatilities on ICBC Turkey and Smart Gunes 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 Smart Gunes. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Smart Gunes.
Diversification Opportunities for ICBC Turkey and Smart Gunes
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICBC and Smart is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Smart Gunes Enerjisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Gunes Enerjisi 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 Smart Gunes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Gunes Enerjisi has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Smart Gunes go up and down completely randomly.
Pair Corralation between ICBC Turkey and Smart Gunes
Assuming the 90 days trading horizon ICBC Turkey Bank is expected to generate 0.76 times more return on investment than Smart Gunes. However, ICBC Turkey Bank is 1.31 times less risky than Smart Gunes. It trades about 0.2 of its potential returns per unit of risk. Smart Gunes Enerjisi is currently generating about 0.04 per unit of risk. If you would invest 1,302 in ICBC Turkey Bank on August 30, 2024 and sell it today you would earn a total of 108.00 from holding ICBC Turkey Bank or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICBC Turkey Bank vs. Smart Gunes Enerjisi
Performance |
| Timeline |
| ICBC Turkey Bank |
| Smart Gunes Enerjisi |
ICBC Turkey and Smart Gunes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Smart Gunes
The main advantage of trading using opposite ICBC Turkey and Smart Gunes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Smart Gunes 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 Smart Gunes will offset losses from the drop in Smart Gunes' long position.| ICBC Turkey vs. Koza Anadolu Metal | ICBC Turkey vs. Bms Birlesik Metal | ICBC Turkey vs. Gentas Genel Metal | ICBC Turkey vs. Politeknik Metal Sanayi |
| Smart Gunes vs. Creditwest Faktoring AS | Smart Gunes vs. MEGA METAL | Smart Gunes vs. Trabzonspor Sportif Yatirim | Smart Gunes 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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