Correlation Between ICBC Turkey and Tek Art
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Tek Art 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 Tek Art 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 Tek Art Insaat Ticaret, you can compare the effects of market volatilities on ICBC Turkey and Tek Art 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 Tek Art. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Tek Art.
Diversification Opportunities for ICBC Turkey and Tek Art
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ICBC and Tek is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Tek Art Insaat Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tek Art Insaat 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 Tek Art. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tek Art Insaat has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Tek Art go up and down completely randomly.
Pair Corralation between ICBC Turkey and Tek Art
Assuming the 90 days trading horizon ICBC Turkey Bank is expected to generate 0.6 times more return on investment than Tek Art. However, ICBC Turkey Bank is 1.68 times less risky than Tek Art. It trades about 0.1 of its potential returns per unit of risk. Tek Art Insaat Ticaret is currently generating about -0.02 per unit of risk. If you would invest 1,302 in ICBC Turkey Bank on August 28, 2024 and sell it today you would earn a total of 98.00 from holding ICBC Turkey Bank or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICBC Turkey Bank vs. Tek Art Insaat Ticaret
Performance |
| Timeline |
| ICBC Turkey Bank |
| Tek Art Insaat |
ICBC Turkey and Tek Art Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Tek Art
The main advantage of trading using opposite ICBC Turkey and Tek Art positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Tek Art 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 Tek Art will offset losses from the drop in Tek Art's long position.| ICBC Turkey vs. Akcansa Cimento Sanayi | ICBC Turkey vs. Akbank TAS | ICBC Turkey vs. Bms Birlesik Metal | ICBC Turkey vs. Trabzonspor Sportif Yatirim |
| Tek Art vs. Turkish Airlines | Tek Art vs. Cuhadaroglu Metal Sanayi | Tek Art vs. Bms Birlesik Metal | Tek Art vs. E Data Teknoloji Pazarlama |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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