Correlation Between Ihlas Yayin and ICBC Turkey
Can any of the company-specific risk be diversified away by investing in both Ihlas Yayin and ICBC Turkey 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 Ihlas Yayin and ICBC Turkey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihlas Yayin Holding and ICBC Turkey Bank, you can compare the effects of market volatilities on Ihlas Yayin and ICBC Turkey 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 Ihlas Yayin with a short position of ICBC Turkey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihlas Yayin and ICBC Turkey.
Diversification Opportunities for Ihlas Yayin and ICBC Turkey
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ihlas and ICBC is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ihlas Yayin Holding and ICBC Turkey Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICBC Turkey Bank and Ihlas Yayin 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 Ihlas Yayin Holding are associated (or correlated) with ICBC Turkey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICBC Turkey Bank has no effect on the direction of Ihlas Yayin i.e., Ihlas Yayin and ICBC Turkey go up and down completely randomly.
Pair Corralation between Ihlas Yayin and ICBC Turkey
Assuming the 90 days trading horizon Ihlas Yayin Holding is expected to under-perform the ICBC Turkey. In addition to that, Ihlas Yayin is 1.58 times more volatile than ICBC Turkey Bank. It trades about -0.31 of its total potential returns per unit of risk. ICBC Turkey Bank is currently generating about 0.08 per unit of volatility. If you would invest 1,372 in ICBC Turkey Bank on September 20, 2024 and sell it today you would earn a total of 62.00 from holding ICBC Turkey Bank or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihlas Yayin Holding vs. ICBC Turkey Bank
Performance |
| Timeline |
| Ihlas Yayin Holding |
| ICBC Turkey Bank |
Ihlas Yayin and ICBC Turkey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihlas Yayin and ICBC Turkey
The main advantage of trading using opposite Ihlas Yayin and ICBC Turkey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihlas Yayin position performs unexpectedly, ICBC Turkey 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 ICBC Turkey will offset losses from the drop in ICBC Turkey's long position.| Ihlas Yayin vs. Mackolik Internet Hizmetleri | Ihlas Yayin vs. Koza Anadolu Metal | Ihlas Yayin vs. Bms Birlesik Metal | Ihlas Yayin vs. Datagate Bilgisayar Malzemeleri |
| ICBC Turkey vs. Pamel Yenilenebilir Elektrik | ICBC Turkey vs. Bosch Fren Sistemleri | ICBC Turkey vs. Marka Yatirim Holding | ICBC Turkey 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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