Correlation Between Turkiye Kalkinma and ICBC Turkey
Can any of the company-specific risk be diversified away by investing in both Turkiye Kalkinma 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 Turkiye Kalkinma and ICBC Turkey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Kalkinma Bankasi and ICBC Turkey Bank, you can compare the effects of market volatilities on Turkiye Kalkinma 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 Turkiye Kalkinma with a short position of ICBC Turkey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Kalkinma and ICBC Turkey.
Diversification Opportunities for Turkiye Kalkinma and ICBC Turkey
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Turkiye and ICBC is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Kalkinma Bankasi 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 Turkiye Kalkinma 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 Turkiye Kalkinma Bankasi 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 Turkiye Kalkinma i.e., Turkiye Kalkinma and ICBC Turkey go up and down completely randomly.
Pair Corralation between Turkiye Kalkinma and ICBC Turkey
Assuming the 90 days trading horizon Turkiye Kalkinma is expected to generate 3.16 times less return on investment than ICBC Turkey. But when comparing it to its historical volatility, Turkiye Kalkinma Bankasi is 1.51 times less risky than ICBC Turkey. It trades about 0.1 of its potential returns per unit of risk. ICBC Turkey Bank is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,302 in ICBC Turkey Bank on August 30, 2024 and sell it today you would earn a total of 108.00 from holding ICBC Turkey Bank or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Kalkinma Bankasi vs. ICBC Turkey Bank
Performance |
| Timeline |
| Turkiye Kalkinma Bankasi |
| ICBC Turkey Bank |
Turkiye Kalkinma and ICBC Turkey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Kalkinma and ICBC Turkey
The main advantage of trading using opposite Turkiye Kalkinma and ICBC Turkey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Kalkinma 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.| Turkiye Kalkinma vs. Qnb Finansbank AS | Turkiye Kalkinma vs. Turkiye Vakiflar Bankasi | Turkiye Kalkinma vs. Turkiye Halk Bankasi | Turkiye Kalkinma vs. Turkiye Sinai Kalkinma |
| ICBC Turkey vs. MEGA METAL | ICBC Turkey vs. Turkiye Kalkinma Bankasi | ICBC Turkey vs. Galatasaray Sportif Sinai | ICBC Turkey vs. Cuhadaroglu Metal Sanayi |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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