Correlation Between ICBC Turkey and Anel Elektrik

Can any of the company-specific risk be diversified away by investing in both ICBC Turkey and Anel Elektrik 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 Anel Elektrik 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 Anel Elektrik Proje, you can compare the effects of market volatilities on ICBC Turkey and Anel Elektrik 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 Anel Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICBC Turkey and Anel Elektrik.

Diversification Opportunities for ICBC Turkey and Anel Elektrik

0.65

Correlation Coefficient

ICBC Turkey  Anel Elektrik

Poor diversification

The 3 months correlation between ICBC and Anel is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Anel Elektrik Proje in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anel Elektrik Proje 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 Anel Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anel Elektrik Proje has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Anel Elektrik go up and down completely randomly.

Pair Corralation between ICBC Turkey and Anel Elektrik

Assuming the 90 days trading horizon ICBC Turkey Bank is expected to under-perform the Anel Elektrik. In addition to that, ICBC Turkey is 1.06 times more volatile than Anel Elektrik Proje. It trades about -0.07 of its total potential returns per unit of risk. Anel Elektrik Proje is currently generating about -0.02 per unit of volatility. If you would invest  1,563  in Anel Elektrik Proje on December 22, 2024 and sell it today you would lose (75.00) from holding Anel Elektrik Proje or give up 4.8% of portfolio value over 90 days.

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

ICBC Turkey Bank  vs.  Anel Elektrik Proje

ICBC Turkey Bank

Risk-Adjusted Performance

Very Weak

Over the last 90 days ICBC Turkey Bank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak 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.

Anel Elektrik Proje

Risk-Adjusted Performance

Very Weak

Over the last 90 days Anel Elektrik Proje has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Anel Elektrik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with ICBC Turkey and Anel Elektrik

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

The idea behind ICBC Turkey Bank and Anel Elektrik Proje 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.