Correlation Between ICBC Turkey and Unlu Yatirim

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

Diversification Opportunities for ICBC Turkey and Unlu Yatirim

0.9

Correlation Coefficient

ICBC Turkey  Unlu Yatirim

Almost no diversification

The 3 months correlation between ICBC and Unlu is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Unlu Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unlu Yatirim Holding 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 Unlu Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unlu Yatirim Holding has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Unlu Yatirim go up and down completely randomly.

Pair Corralation between ICBC Turkey and Unlu Yatirim

Assuming the 90 days trading horizon ICBC Turkey Bank is expected to under-perform the Unlu Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, ICBC Turkey Bank is 1.03 times less risky than Unlu Yatirim. The stock trades about -0.01 of its potential returns per unit of risk. The Unlu Yatirim Holding is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  1,729  in Unlu Yatirim Holding on October 5, 2024 and sell it today you would lose (235.00) from holding Unlu Yatirim Holding or give up 13.59% of portfolio value over 90 days.

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

ICBC Turkey Bank  vs.  Unlu Yatirim Holding

ICBC Turkey Bank

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ICBC Turkey Bank are ranked lower than 9 (%) 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.

Unlu Yatirim Holding

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Unlu Yatirim Holding are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Unlu Yatirim unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ICBC Turkey and Unlu Yatirim

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

The idea behind ICBC Turkey Bank and Unlu Yatirim Holding 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.