Correlation Between Creditwest Faktoring and Dinamik Isi
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Dinamik Isi 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 Dinamik Isi 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 Dinamik Isi Makina, you can compare the effects of market volatilities on Creditwest Faktoring and Dinamik Isi 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 Dinamik Isi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Dinamik Isi.
Diversification Opportunities for Creditwest Faktoring and Dinamik Isi
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Creditwest and Dinamik is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Dinamik Isi Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dinamik Isi Makina 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 Dinamik Isi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dinamik Isi Makina has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Dinamik Isi go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Dinamik Isi
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 1.33 times more return on investment than Dinamik Isi. However, Creditwest Faktoring is 1.33 times more volatile than Dinamik Isi Makina. It trades about 0.2 of its potential returns per unit of risk. Dinamik Isi Makina is currently generating about 0.16 per unit of risk. If you would invest 607.00 in Creditwest Faktoring AS on September 2, 2024 and sell it today you would earn a total of 109.00 from holding Creditwest Faktoring AS or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creditwest Faktoring AS vs. Dinamik Isi Makina
Performance |
| Timeline |
| Creditwest Faktoring |
| Dinamik Isi Makina |
Creditwest Faktoring and Dinamik Isi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Dinamik Isi
The main advantage of trading using opposite Creditwest Faktoring and Dinamik Isi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Dinamik Isi 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 Dinamik Isi will offset losses from the drop in Dinamik Isi'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 |
| Dinamik Isi vs. Turkiye Sise ve | Dinamik Isi vs. Polisan Holding AS | Dinamik Isi vs. Politeknik Metal Sanayi | Dinamik Isi vs. Marshall Boya ve |
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.
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