Correlation Between ICBC Turkey and Verusa Holding
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Verusa Holding 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 Verusa Holding 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 Verusa Holding AS, you can compare the effects of market volatilities on ICBC Turkey and Verusa Holding 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 Verusa Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Verusa Holding.
Diversification Opportunities for ICBC Turkey and Verusa Holding
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICBC and Verusa is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Verusa Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verusa Holding AS 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 Verusa Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verusa Holding AS has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Verusa Holding go up and down completely randomly.
Pair Corralation between ICBC Turkey and Verusa Holding
Assuming the 90 days trading horizon ICBC Turkey is expected to generate 2.89 times less return on investment than Verusa Holding. In addition to that, ICBC Turkey is 1.15 times more volatile than Verusa Holding AS. It trades about 0.04 of its total potential returns per unit of risk. Verusa Holding AS is currently generating about 0.12 per unit of volatility. If you would invest 26,400 in Verusa Holding AS on September 14, 2024 and sell it today you would earn a total of 1,750 from holding Verusa Holding AS or generate 6.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ICBC Turkey Bank vs. Verusa Holding AS
Performance |
| Timeline |
| ICBC Turkey Bank |
| Verusa Holding AS |
ICBC Turkey and Verusa Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Verusa Holding
The main advantage of trading using opposite ICBC Turkey and Verusa Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Verusa Holding 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 Verusa Holding will offset losses from the drop in Verusa Holding's long position.| ICBC Turkey vs. Gentas Genel Metal | ICBC Turkey vs. Borlease Otomotiv AS | ICBC Turkey vs. Creditwest Faktoring AS | ICBC Turkey vs. Mackolik Internet Hizmetleri |
| Verusa Holding vs. Pamel Yenilenebilir Elektrik | Verusa Holding vs. Bosch Fren Sistemleri | Verusa Holding vs. Marka Yatirim Holding | Verusa Holding vs. Dogus Gayrimenkul Yatirim |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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