Correlation Between Marti Gayrimenkul and ICBC Turkey
Can any of the company-specific risk be diversified away by investing in both Marti Gayrimenkul 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 Marti Gayrimenkul and ICBC Turkey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marti Gayrimenkul Yatirim and ICBC Turkey Bank, you can compare the effects of market volatilities on Marti Gayrimenkul 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 Marti Gayrimenkul with a short position of ICBC Turkey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marti Gayrimenkul and ICBC Turkey.
Diversification Opportunities for Marti Gayrimenkul and ICBC Turkey
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Marti and ICBC is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Marti Gayrimenkul Yatirim 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 Marti Gayrimenkul 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 Marti Gayrimenkul Yatirim 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 Marti Gayrimenkul i.e., Marti Gayrimenkul and ICBC Turkey go up and down completely randomly.
Pair Corralation between Marti Gayrimenkul and ICBC Turkey
Assuming the 90 days trading horizon Marti Gayrimenkul Yatirim is expected to generate 3.35 times more return on investment than ICBC Turkey. However, Marti Gayrimenkul is 3.35 times more volatile than ICBC Turkey Bank. It trades about 0.03 of its potential returns per unit of risk. ICBC Turkey Bank is currently generating about 0.04 per unit of risk. If you would invest 171.00 in Marti Gayrimenkul Yatirim on October 25, 2024 and sell it today you would lose (3.00) from holding Marti Gayrimenkul Yatirim or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marti Gayrimenkul Yatirim vs. ICBC Turkey Bank
Performance |
| Timeline |
| Marti Gayrimenkul Yatirim |
| ICBC Turkey Bank |
Marti Gayrimenkul and ICBC Turkey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marti Gayrimenkul and ICBC Turkey
The main advantage of trading using opposite Marti Gayrimenkul and ICBC Turkey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marti Gayrimenkul 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.| Marti Gayrimenkul vs. Turkiye Petrol Rafinerileri | Marti Gayrimenkul vs. Koc Holding AS | Marti Gayrimenkul vs. Turkiye Sise ve | Marti Gayrimenkul vs. Eregli Demir ve |
| ICBC Turkey vs. KOC METALURJI | ICBC Turkey vs. Turkish Airlines | ICBC Turkey vs. Bms Birlesik Metal | ICBC Turkey vs. Trabzonspor Sportif 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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