Correlation Between ICBC Turkey and Kalekim Kimyevi

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

Diversification Opportunities for ICBC Turkey and Kalekim Kimyevi

0.7

Correlation Coefficient

ICBC Turkey  Kalekim Kimyevi

Poor diversification

The 3 months correlation between ICBC and Kalekim is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Kalekim Kimyevi Maddeler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalekim Kimyevi Maddeler 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 Kalekim Kimyevi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalekim Kimyevi Maddeler has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Kalekim Kimyevi go up and down completely randomly.

Pair Corralation between ICBC Turkey and Kalekim Kimyevi

Assuming the 90 days trading horizon ICBC Turkey Bank is expected to under-perform the Kalekim Kimyevi. But the stock apears to be less risky and, when comparing its historical volatility, ICBC Turkey Bank is 1.09 times less risky than Kalekim Kimyevi. The stock trades about -0.01 of its potential returns per unit of risk. The Kalekim Kimyevi Maddeler is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,716  in Kalekim Kimyevi Maddeler on September 15, 2024 and sell it today you would earn a total of  404.00  from holding Kalekim Kimyevi Maddeler or generate 14.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.2%
Values	Daily Returns

ICBC Turkey Bank  vs.  Kalekim Kimyevi Maddeler

ICBC Turkey Bank

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ICBC Turkey Bank are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, ICBC Turkey is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Kalekim Kimyevi Maddeler

Risk-Adjusted Performance

6 of 100

Modest

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

Pair Trading with ICBC Turkey and Kalekim Kimyevi

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

The idea behind ICBC Turkey Bank and Kalekim Kimyevi Maddeler 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..