Correlation Between ICBC Turkey and Seker Finansal
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Seker Finansal 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 Seker Finansal 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 Seker Finansal Kiralama, you can compare the effects of market volatilities on ICBC Turkey and Seker Finansal 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 Seker Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Seker Finansal.
Diversification Opportunities for ICBC Turkey and Seker Finansal
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ICBC and Seker is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Seker Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seker Finansal Kiralama 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 Seker Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seker Finansal Kiralama has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Seker Finansal go up and down completely randomly.
Pair Corralation between ICBC Turkey and Seker Finansal
Assuming the 90 days trading horizon ICBC Turkey Bank is expected to generate 0.93 times more return on investment than Seker Finansal. However, ICBC Turkey Bank is 1.08 times less risky than Seker Finansal. It trades about -0.01 of its potential returns per unit of risk. Seker Finansal Kiralama is currently generating about -0.09 per unit of risk. If you would invest 1,400 in ICBC Turkey Bank on September 25, 2024 and sell it today you would lose (14.00) from holding ICBC Turkey Bank or give up 1.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ICBC Turkey Bank vs. Seker Finansal Kiralama
Performance |
Timeline |
ICBC Turkey Bank |
Seker Finansal Kiralama |
ICBC Turkey and Seker Finansal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ICBC Turkey and Seker Finansal
The main advantage of trading using opposite ICBC Turkey and Seker Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Seker Finansal 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 Seker Finansal will offset losses from the drop in Seker Finansal's long position.ICBC Turkey vs. Gentas Genel Metal | ICBC Turkey vs. Bms Birlesik Metal | ICBC Turkey vs. Trabzonspor Sportif Yatirim | ICBC Turkey vs. Koza Anadolu Metal |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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