Correlation Between Creditwest Faktoring and Cuhadaroglu Metal
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Cuhadaroglu Metal 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 Cuhadaroglu Metal 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 Cuhadaroglu Metal Sanayi, you can compare the effects of market volatilities on Creditwest Faktoring and Cuhadaroglu Metal 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 Cuhadaroglu Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Cuhadaroglu Metal.
Diversification Opportunities for Creditwest Faktoring and Cuhadaroglu Metal
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Creditwest and Cuhadaroglu is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Cuhadaroglu Metal Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuhadaroglu Metal Sanayi 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 Cuhadaroglu Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuhadaroglu Metal Sanayi has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Cuhadaroglu Metal go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Cuhadaroglu Metal
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 0.69 times more return on investment than Cuhadaroglu Metal. However, Creditwest Faktoring AS is 1.46 times less risky than Cuhadaroglu Metal. It trades about -0.07 of its potential returns per unit of risk. Cuhadaroglu Metal Sanayi is currently generating about -0.15 per unit of risk. If you would invest 620.00 in Creditwest Faktoring AS on October 20, 2024 and sell it today you would lose (15.00) from holding Creditwest Faktoring AS or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creditwest Faktoring AS vs. Cuhadaroglu Metal Sanayi
Performance |
| Timeline |
| Creditwest Faktoring |
| Cuhadaroglu Metal Sanayi |
Creditwest Faktoring and Cuhadaroglu Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Cuhadaroglu Metal
The main advantage of trading using opposite Creditwest Faktoring and Cuhadaroglu Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Cuhadaroglu Metal 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 Cuhadaroglu Metal will offset losses from the drop in Cuhadaroglu Metal's long position.| Creditwest Faktoring vs. Turkiye Kalkinma Bankasi | Creditwest Faktoring vs. Borlease Otomotiv AS | Creditwest Faktoring vs. Gentas Genel Metal | Creditwest Faktoring vs. Trabzonspor Sportif Yatirim |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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