Correlation Between Yapi Ve and ICBC Turkey
Can any of the company-specific risk be diversified away by investing in both Yapi Ve 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 Yapi Ve and ICBC Turkey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yapi ve Kredi and ICBC Turkey Bank, you can compare the effects of market volatilities on Yapi Ve 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 Yapi Ve with a short position of ICBC Turkey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yapi Ve and ICBC Turkey.
Diversification Opportunities for Yapi Ve and ICBC Turkey
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yapi and ICBC is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi 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 Yapi Ve 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 Yapi ve Kredi 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 Yapi Ve i.e., Yapi Ve and ICBC Turkey go up and down completely randomly.
Pair Corralation between Yapi Ve and ICBC Turkey
Assuming the 90 days trading horizon Yapi ve Kredi is expected to generate 1.55 times more return on investment than ICBC Turkey. However, Yapi Ve is 1.55 times more volatile than ICBC Turkey Bank. It trades about 0.33 of its potential returns per unit of risk. ICBC Turkey Bank is currently generating about 0.14 per unit of risk. If you would invest 2,406 in Yapi ve Kredi on September 2, 2024 and sell it today you would earn a total of 558.00 from holding Yapi ve Kredi or generate 23.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yapi ve Kredi vs. ICBC Turkey Bank
Performance |
| Timeline |
| Yapi ve Kredi |
| ICBC Turkey Bank |
Yapi Ve and ICBC Turkey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yapi Ve and ICBC Turkey
The main advantage of trading using opposite Yapi Ve and ICBC Turkey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yapi Ve 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.| Yapi Ve vs. Akcansa Cimento Sanayi | Yapi Ve vs. Koza Anadolu Metal | Yapi Ve vs. Bms Birlesik Metal | Yapi Ve vs. Cuhadaroglu Metal Sanayi |
| ICBC Turkey vs. Creditwest Faktoring AS | ICBC Turkey vs. Bms Birlesik Metal | 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 Stocks Directory module to find actively traded stocks across global markets.
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