Correlation Between ICBC Turkey and Akcansa Cimento
Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Akcansa Cimento 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 Akcansa Cimento 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 Akcansa Cimento Sanayi, you can compare the effects of market volatilities on ICBC Turkey and Akcansa Cimento 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 Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Akcansa Cimento.
Diversification Opportunities for ICBC Turkey and Akcansa Cimento
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICBC and Akcansa is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi 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 Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Akcansa Cimento go up and down completely randomly.
Pair Corralation between ICBC Turkey and Akcansa Cimento
Assuming the 90 days trading horizon ICBC Turkey is expected to generate 1.25 times less return on investment than Akcansa Cimento. In addition to that, ICBC Turkey is 1.14 times more volatile than Akcansa Cimento Sanayi. It trades about 0.01 of its total potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.02 per unit of volatility. If you would invest 16,105 in Akcansa Cimento Sanayi on December 3, 2024 and sell it today you would earn a total of 1,135 from holding Akcansa Cimento Sanayi or generate 7.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ICBC Turkey Bank vs. Akcansa Cimento Sanayi
Performance |
Timeline |
ICBC Turkey Bank |
Akcansa Cimento Sanayi |
ICBC Turkey and Akcansa Cimento Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ICBC Turkey and Akcansa Cimento
The main advantage of trading using opposite ICBC Turkey and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Akcansa Cimento 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 Akcansa Cimento will offset losses from the drop in Akcansa Cimento's long position.ICBC Turkey vs. Turkish Airlines | ICBC Turkey vs. E Data Teknoloji Pazarlama | ICBC Turkey vs. MEGA METAL | ICBC Turkey vs. CEO Event Medya |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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