Correlation Between ICBC Turkey and Kristal Kola
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Kristal Kola 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 Kristal Kola 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 Kristal Kola ve, you can compare the effects of market volatilities on ICBC Turkey and Kristal Kola 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 Kristal Kola. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Kristal Kola.
Diversification Opportunities for ICBC Turkey and Kristal Kola
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ICBC and Kristal is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Kristal Kola ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kristal Kola ve 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 Kristal Kola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kristal Kola ve has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Kristal Kola go up and down completely randomly.
Pair Corralation between ICBC Turkey and Kristal Kola
Assuming the 90 days trading horizon ICBC Turkey is expected to generate 1.57 times less return on investment than Kristal Kola. But when comparing it to its historical volatility, ICBC Turkey Bank is 1.37 times less risky than Kristal Kola. It trades about 0.03 of its potential returns per unit of risk. Kristal Kola ve is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 553.00 in Kristal Kola ve on September 24, 2024 and sell it today you would earn a total of 22.00 from holding Kristal Kola ve or generate 3.98% 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. Kristal Kola ve
Performance |
Timeline |
ICBC Turkey Bank |
Kristal Kola ve |
ICBC Turkey and Kristal Kola Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ICBC Turkey and Kristal Kola
The main advantage of trading using opposite ICBC Turkey and Kristal Kola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Kristal Kola 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 Kristal Kola will offset losses from the drop in Kristal Kola's long position.ICBC Turkey vs. Aksa Akrilik Kimya | ICBC Turkey vs. Tofas Turk Otomobil | ICBC Turkey vs. AK Sigorta AS | ICBC Turkey vs. Is Yatirim Menkul |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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