Correlation Between Bosch Fren and Creditwest Faktoring
Can any of the company-specific risk be diversified away by investing in both Bosch Fren and Creditwest Faktoring 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 Bosch Fren and Creditwest Faktoring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bosch Fren Sistemleri and Creditwest Faktoring AS, you can compare the effects of market volatilities on Bosch Fren and Creditwest Faktoring 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 Bosch Fren with a short position of Creditwest Faktoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch Fren and Creditwest Faktoring.
Diversification Opportunities for Bosch Fren and Creditwest Faktoring
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bosch and Creditwest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri and Creditwest Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creditwest Faktoring and Bosch Fren 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 Bosch Fren Sistemleri are associated (or correlated) with Creditwest Faktoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creditwest Faktoring has no effect on the direction of Bosch Fren i.e., Bosch Fren and Creditwest Faktoring go up and down completely randomly.
Pair Corralation between Bosch Fren and Creditwest Faktoring
Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to under-perform the Creditwest Faktoring. But the stock apears to be less risky and, when comparing its historical volatility, Bosch Fren Sistemleri is 2.0 times less risky than Creditwest Faktoring. The stock trades about -0.17 of its potential returns per unit of risk. The Creditwest Faktoring AS is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Creditwest Faktoring AS on January 19, 2025 and sell it today you would earn a total of 194.00 from holding Creditwest Faktoring AS or generate 27.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosch Fren Sistemleri vs. Creditwest Faktoring AS
Performance |
| Timeline |
| Bosch Fren Sistemleri |
| Creditwest Faktoring |
Bosch Fren and Creditwest Faktoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosch Fren and Creditwest Faktoring
The main advantage of trading using opposite Bosch Fren and Creditwest Faktoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch Fren position performs unexpectedly, Creditwest Faktoring 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 Creditwest Faktoring will offset losses from the drop in Creditwest Faktoring's long position.| Bosch Fren vs. Galatasaray Sportif Sinai | Bosch Fren vs. Creditwest Faktoring AS | Bosch Fren vs. Politeknik Metal Sanayi | Bosch Fren vs. Trabzonspor Sportif Yatirim |
| Creditwest Faktoring vs. Cuhadaroglu Metal Sanayi | Creditwest Faktoring vs. KOC METALURJI | Creditwest Faktoring vs. MEGA METAL | Creditwest Faktoring vs. Turkish Airlines |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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