Correlation Between Creditwest Faktoring and Borlease Otomotiv
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Borlease Otomotiv 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 Creditwest Faktoring and Borlease Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creditwest Faktoring AS and Borlease Otomotiv AS, you can compare the effects of market volatilities on Creditwest Faktoring and Borlease Otomotiv 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 Creditwest Faktoring with a short position of Borlease Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Borlease Otomotiv.
Diversification Opportunities for Creditwest Faktoring and Borlease Otomotiv
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Creditwest and Borlease is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Borlease Otomotiv AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borlease Otomotiv and Creditwest Faktoring 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 Creditwest Faktoring AS are associated (or correlated) with Borlease Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borlease Otomotiv has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Borlease Otomotiv go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Borlease Otomotiv
Assuming the 90 days trading horizon Creditwest Faktoring is expected to generate 1.71 times less return on investment than Borlease Otomotiv. In addition to that, Creditwest Faktoring is 1.2 times more volatile than Borlease Otomotiv AS. It trades about 0.08 of its total potential returns per unit of risk. Borlease Otomotiv AS is currently generating about 0.15 per unit of volatility. If you would invest 4,032 in Borlease Otomotiv AS on September 2, 2024 and sell it today you would earn a total of 1,193 from holding Borlease Otomotiv AS or generate 29.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creditwest Faktoring AS vs. Borlease Otomotiv AS
Performance |
| Timeline |
| Creditwest Faktoring |
| Borlease Otomotiv |
Creditwest Faktoring and Borlease Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Borlease Otomotiv
The main advantage of trading using opposite Creditwest Faktoring and Borlease Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Borlease Otomotiv 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 Borlease Otomotiv will offset losses from the drop in Borlease Otomotiv's long position.| Creditwest Faktoring vs. Cuhadaroglu Metal Sanayi | Creditwest Faktoring vs. MEGA METAL | Creditwest Faktoring vs. Akbank TAS | Creditwest Faktoring vs. Politeknik Metal Sanayi |
| Borlease Otomotiv vs. Koza Anadolu Metal | Borlease Otomotiv vs. Cuhadaroglu Metal Sanayi | Borlease Otomotiv vs. Bms Birlesik Metal | Borlease Otomotiv vs. Qnb Finansbank AS |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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