Correlation Between ICBC Turkey and Yunsa Yunlu

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

Diversification Opportunities for ICBC Turkey and Yunsa Yunlu

0.5
  Correlation Coefficient

Very weak diversification

The 3 months correlation between ICBC and Yunsa is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding ICBC Turkey Bank and Yunsa Yunlu Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunsa Yunlu 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 Yunsa Yunlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunsa Yunlu Sanayi has no effect on the direction of ICBC Turkey i.e., ICBC Turkey and Yunsa Yunlu go up and down completely randomly.

Pair Corralation between ICBC Turkey and Yunsa Yunlu

Assuming the 90 days trading horizon ICBC Turkey Bank is expected to generate 1.09 times more return on investment than Yunsa Yunlu. However, ICBC Turkey is 1.09 times more volatile than Yunsa Yunlu Sanayi. It trades about 0.01 of its potential returns per unit of risk. Yunsa Yunlu Sanayi is currently generating about -0.04 per unit of risk. If you would invest  1,518  in ICBC Turkey Bank on September 23, 2024 and sell it today you would lose (103.00) from holding ICBC Turkey Bank or give up 6.79% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

ICBC Turkey Bank  vs.  Yunsa Yunlu Sanayi

 Performance 
       Timeline  
ICBC Turkey Bank 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in ICBC Turkey Bank are ranked lower than 1 (%) 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 newest stock price confusion, may contribute to short-horizon losses for the traders.
Yunsa Yunlu Sanayi 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Yunsa Yunlu Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent 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.

ICBC Turkey and Yunsa Yunlu Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ICBC Turkey and Yunsa Yunlu

The main advantage of trading using opposite ICBC Turkey and Yunsa Yunlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICBC Turkey position performs unexpectedly, Yunsa Yunlu 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 Yunsa Yunlu will offset losses from the drop in Yunsa Yunlu's long position.
The idea behind ICBC Turkey Bank and Yunsa Yunlu Sanayi 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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