Correlation Between ICBC Turkey and Vakif Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Vakif 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 Vakif 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 Vakif Gayrimenkul Yatirim, you can compare the effects of market volatilities on ICBC Turkey and Vakif 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 Vakif Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Vakif Gayrimenkul.
Diversification Opportunities for ICBC Turkey and Vakif Gayrimenkul
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICBC and Vakif is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Vakif Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakif 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 Vakif Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakif Gayrimenkul Yatirim has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Vakif Gayrimenkul go up and down completely randomly.
Pair Corralation between ICBC Turkey and Vakif Gayrimenkul
Assuming the 90 days trading horizon ICBC Turkey is expected to generate 1.87 times less return on investment than Vakif Gayrimenkul. But when comparing it to its historical volatility, ICBC Turkey Bank is 2.32 times less risky than Vakif Gayrimenkul. It trades about 0.04 of its potential returns per unit of risk. Vakif Gayrimenkul Yatirim is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 174.00 in Vakif Gayrimenkul Yatirim on August 27, 2024 and sell it today you would earn a total of 38.00 from holding Vakif Gayrimenkul Yatirim or generate 21.84% 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. Vakif Gayrimenkul Yatirim
Performance |
| Timeline |
| ICBC Turkey Bank |
| Vakif Gayrimenkul Yatirim |
ICBC Turkey and Vakif Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICBC Turkey and Vakif Gayrimenkul
The main advantage of trading using opposite ICBC Turkey and Vakif Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Vakif 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 Vakif Gayrimenkul will offset losses from the drop in Vakif Gayrimenkul's long position.| ICBC Turkey vs. Gentas Genel Metal | ICBC Turkey vs. Politeknik Metal Sanayi | ICBC Turkey vs. Galatasaray Sportif Sinai | ICBC Turkey vs. Sodas Sodyum Sanayi |
| Vakif Gayrimenkul vs. ICBC Turkey Bank | Vakif Gayrimenkul vs. Borlease Otomotiv AS | Vakif Gayrimenkul vs. Sodas Sodyum Sanayi | Vakif Gayrimenkul vs. Bms Birlesik 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |