Correlation Between Seker Finansal and ICBC Turkey
Can any of the company-specific risk be diversified away by investing in both Seker Finansal 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 Seker Finansal and ICBC Turkey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seker Finansal Kiralama and ICBC Turkey Bank, you can compare the effects of market volatilities on Seker Finansal 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 Seker Finansal with a short position of ICBC Turkey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seker Finansal and ICBC Turkey.
Diversification Opportunities for Seker Finansal and ICBC Turkey
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Seker and ICBC is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Seker Finansal Kiralama 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 Seker Finansal 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 Seker Finansal Kiralama 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 Seker Finansal i.e., Seker Finansal and ICBC Turkey go up and down completely randomly.
Pair Corralation between Seker Finansal and ICBC Turkey
Assuming the 90 days trading horizon Seker Finansal is expected to generate 5.9 times less return on investment than ICBC Turkey. But when comparing it to its historical volatility, Seker Finansal Kiralama is 1.08 times less risky than ICBC Turkey. It trades about 0.03 of its potential returns per unit of risk. ICBC Turkey Bank is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,303 in ICBC Turkey Bank on September 1, 2024 and sell it today you would earn a total of 92.00 from holding ICBC Turkey Bank or generate 7.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Seker Finansal Kiralama vs. ICBC Turkey Bank
Performance |
| Timeline |
| Seker Finansal Kiralama |
| ICBC Turkey Bank |
Seker Finansal and ICBC Turkey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seker Finansal and ICBC Turkey
The main advantage of trading using opposite Seker Finansal and ICBC Turkey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seker Finansal 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.| Seker Finansal vs. Cuhadaroglu Metal Sanayi | Seker Finansal vs. Akcansa Cimento Sanayi | Seker Finansal vs. Borlease Otomotiv AS | Seker Finansal vs. Qnb Finansbank AS |
| ICBC Turkey vs. Akcansa Cimento Sanayi | ICBC Turkey vs. Mackolik Internet Hizmetleri | ICBC Turkey vs. Koza Anadolu Metal | ICBC Turkey vs. Qnb Finansbank AS |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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