Correlation Between Creditwest Faktoring and Duran Dogan
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Duran Dogan 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 Duran Dogan 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 Duran Dogan Basim ve, you can compare the effects of market volatilities on Creditwest Faktoring and Duran Dogan 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 Duran Dogan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Duran Dogan.
Diversification Opportunities for Creditwest Faktoring and Duran Dogan
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Creditwest and Duran is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Duran Dogan Basim ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duran Dogan Basim 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 Duran Dogan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duran Dogan Basim has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Duran Dogan go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Duran Dogan
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 0.65 times more return on investment than Duran Dogan. However, Creditwest Faktoring AS is 1.54 times less risky than Duran Dogan. It trades about 0.07 of its potential returns per unit of risk. Duran Dogan Basim ve is currently generating about -0.01 per unit of risk. If you would invest 601.00 in Creditwest Faktoring AS on September 12, 2024 and sell it today you would earn a total of 29.00 from holding Creditwest Faktoring AS or generate 4.83% 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. Duran Dogan Basim ve
Performance |
| Timeline |
| Creditwest Faktoring |
| Duran Dogan Basim |
Creditwest Faktoring and Duran Dogan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Duran Dogan
The main advantage of trading using opposite Creditwest Faktoring and Duran Dogan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Duran Dogan 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 Duran Dogan will offset losses from the drop in Duran Dogan's long position.| Creditwest Faktoring vs. Bms Birlesik Metal | Creditwest Faktoring vs. Silverline Endustri ve | Creditwest Faktoring vs. Sodas Sodyum Sanayi | Creditwest Faktoring vs. Turkiye Kalkinma Bankasi |
| Duran Dogan vs. Akbank TAS | Duran Dogan vs. Silverline Endustri ve | Duran Dogan vs. Turkish Airlines | Duran Dogan vs. Gentas Genel Metal |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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