Correlation Between Unlu Yatirim and ICBC Turkey

Can any of the company-specific risk be diversified away by investing in both Unlu Yatirim and ICBC Turkey 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 Unlu Yatirim and ICBC Turkey into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Unlu Yatirim Holding and ICBC Turkey Bank, you can compare the effects of market volatilities on Unlu Yatirim and ICBC Turkey 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 Unlu Yatirim with a short position of ICBC Turkey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unlu Yatirim and ICBC Turkey.

Diversification Opportunities for Unlu Yatirim and ICBC Turkey

0.0

Correlation Coefficient

Unlu Yatirim  ICBC Turkey

Pay attention - limited upside

The 3 months correlation between Unlu and ICBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Unlu Yatirim Holding and ICBC Turkey Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICBC Turkey Bank and Unlu Yatirim 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 Unlu Yatirim Holding are associated (or correlated) with ICBC Turkey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICBC Turkey Bank has no effect on the direction of Unlu Yatirim i.e., Unlu Yatirim and ICBC Turkey go up and down completely randomly.

Pair Corralation between Unlu Yatirim and ICBC Turkey

If you would invest  1,431  in ICBC Turkey Bank on October 4, 2024 and sell it today you would lose (9.00) from holding ICBC Turkey Bank or give up 0.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Unlu Yatirim Holding  vs.  ICBC Turkey Bank

Unlu Yatirim Holding

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Unlu Yatirim Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Unlu Yatirim is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

ICBC Turkey Bank

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ICBC Turkey Bank are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, ICBC Turkey demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Unlu Yatirim and ICBC Turkey

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

The idea behind Unlu Yatirim Holding and ICBC Turkey Bank 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..