Correlation Between ICBC Turkey and Anatolia Tani

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

Diversification Opportunities for ICBC Turkey and Anatolia Tani

-0.21

Correlation Coefficient

ICBC Turkey  Anatolia Tani

Very good diversification

The 3 months correlation between ICBC and Anatolia is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Anatolia Tani ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anatolia Tani 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 Anatolia Tani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anatolia Tani ve has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Anatolia Tani go up and down completely randomly.

Pair Corralation between ICBC Turkey and Anatolia Tani

Assuming the 90 days trading horizon ICBC Turkey is expected to generate 1.16 times less return on investment than Anatolia Tani. But when comparing it to its historical volatility, ICBC Turkey Bank is 1.38 times less risky than Anatolia Tani. It trades about 0.1 of its potential returns per unit of risk. Anatolia Tani ve is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,355  in Anatolia Tani ve on October 23, 2024 and sell it today you would earn a total of  184.00  from holding Anatolia Tani ve or generate 13.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

ICBC Turkey Bank  vs.  Anatolia Tani ve

ICBC Turkey Bank

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ICBC Turkey Bank are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, ICBC Turkey demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Anatolia Tani ve

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Anatolia Tani ve are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Anatolia Tani demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ICBC Turkey and Anatolia Tani

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

The idea behind ICBC Turkey Bank and Anatolia Tani ve 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.