Correlation Between SASA Polyester and ICBC Turkey

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

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

Diversification Opportunities for SASA Polyester and ICBC Turkey

-0.82

Correlation Coefficient

SASA Polyester  ICBC Turkey

Pay attention - limited upside

The 3 months correlation between SASA and ICBC is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester Sanayi 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 SASA Polyester 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 SASA Polyester Sanayi 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 SASA Polyester i.e., SASA Polyester and ICBC Turkey go up and down completely randomly.

Pair Corralation between SASA Polyester and ICBC Turkey

Assuming the 90 days trading horizon SASA Polyester Sanayi is expected to under-perform the ICBC Turkey. But the stock apears to be less risky and, when comparing its historical volatility, SASA Polyester Sanayi is 1.37 times less risky than ICBC Turkey. The stock trades about -0.17 of its potential returns per unit of risk. The ICBC Turkey Bank is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,210  in ICBC Turkey Bank on April 22, 2025 and sell it today you would earn a total of  337.00  from holding ICBC Turkey Bank or generate 27.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

SASA Polyester Sanayi  vs.  ICBC Turkey Bank

SASA Polyester Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days SASA Polyester Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

ICBC Turkey Bank

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ICBC Turkey Bank are ranked lower than 11 (%) 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.

Pair Trading with SASA Polyester and ICBC Turkey

The main advantage of trading using opposite SASA Polyester and ICBC Turkey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASA Polyester 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 SASA Polyester Sanayi 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.

Check out your portfolio center.

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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.