Correlation Between ICU Girisim and Dow Jones
Can any of the company-specific risk be diversified away by investing in both ICU Girisim and Dow Jones 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 ICU Girisim and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Girisim Sermayesi and Dow Jones Industrial, you can compare the effects of market volatilities on ICU Girisim and Dow Jones 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 ICU Girisim with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Girisim and Dow Jones.
Diversification Opportunities for ICU Girisim and Dow Jones
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICU and Dow is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ICU Girisim Sermayesi and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and ICU Girisim 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 ICU Girisim Sermayesi are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of ICU Girisim i.e., ICU Girisim and Dow Jones go up and down completely randomly.
Pair Corralation between ICU Girisim and Dow Jones
Assuming the 90 days trading horizon ICU Girisim Sermayesi is expected to generate 4.64 times more return on investment than Dow Jones. However, ICU Girisim is 4.64 times more volatile than Dow Jones Industrial. It trades about 0.02 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.02 per unit of risk. If you would invest 2,738 in ICU Girisim Sermayesi on September 20, 2024 and sell it today you would earn a total of 10.00 from holding ICU Girisim Sermayesi or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICU Girisim Sermayesi vs. Dow Jones Industrial
Performance |
| Timeline |
ICU Girisim and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ICU Girisim Sermayesi
Pair trading matchups for ICU Girisim
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ICU Girisim and Dow Jones
The main advantage of trading using opposite ICU Girisim and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Girisim position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| ICU Girisim vs. Akbank TAS | ICU Girisim vs. Koza Anadolu Metal | ICU Girisim vs. MEGA METAL | ICU Girisim vs. Cuhadaroglu Metal Sanayi |
| Dow Jones vs. Digi International | Dow Jones vs. Grupo Televisa SAB | Dow Jones vs. United Microelectronics | Dow Jones vs. Weibo Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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