Correlation Between ICBC Turkey and Turkiye Is

Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Turkiye Is 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 ICBC Turkey and Turkiye Is into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ICBC Turkey Bank and Turkiye Is Bankasi, you can compare the effects of market volatilities on ICBC Turkey and Turkiye Is 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 ICBC Turkey with a short position of Turkiye Is. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Turkiye Is.

Diversification Opportunities for ICBC Turkey and Turkiye Is

0.12

Correlation Coefficient

ICBC Turkey  Turkiye Is

Average diversification

The 3 months correlation between ICBC and Turkiye is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Turkiye Is Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Is Bankasi and ICBC Turkey 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 ICBC Turkey Bank are associated (or correlated) with Turkiye Is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Is Bankasi has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Turkiye Is go up and down completely randomly.

Pair Corralation between ICBC Turkey and Turkiye Is

Assuming the 90 days trading horizon ICBC Turkey Bank is expected to generate 0.7 times more return on investment than Turkiye Is. However, ICBC Turkey Bank is 1.44 times less risky than Turkiye Is. It trades about 0.05 of its potential returns per unit of risk. Turkiye Is Bankasi is currently generating about -0.04 per unit of risk. If you would invest  1,384  in ICBC Turkey Bank on September 13, 2024 and sell it today you would earn a total of  81.00  from holding ICBC Turkey Bank or generate 5.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ICBC Turkey Bank  vs.  Turkiye Is Bankasi

ICBC Turkey Bank

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ICBC Turkey Bank are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, ICBC Turkey may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Turkiye Is Bankasi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkiye Is Bankasi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with ICBC Turkey and Turkiye Is

The main advantage of trading using opposite ICBC Turkey and Turkiye Is positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Turkiye Is 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 Turkiye Is will offset losses from the drop in Turkiye Is' long position.

The idea behind ICBC Turkey Bank and Turkiye Is Bankasi pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.