Correlation Between Creditwest Faktoring and Emlak Konut
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Emlak Konut 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 Emlak Konut 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 Emlak Konut Gayrimenkul, you can compare the effects of market volatilities on Creditwest Faktoring and Emlak Konut 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 Emlak Konut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Emlak Konut.
Diversification Opportunities for Creditwest Faktoring and Emlak Konut
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Creditwest and Emlak is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Emlak Konut Gayrimenkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emlak Konut Gayrimenkul 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 Emlak Konut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emlak Konut Gayrimenkul has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Emlak Konut go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Emlak Konut
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 1.27 times more return on investment than Emlak Konut. However, Creditwest Faktoring is 1.27 times more volatile than Emlak Konut Gayrimenkul. It trades about 0.06 of its potential returns per unit of risk. Emlak Konut Gayrimenkul is currently generating about 0.05 per unit of risk. If you would invest 387.00 in Creditwest Faktoring AS on August 28, 2024 and sell it today you would earn a total of 417.00 from holding Creditwest Faktoring AS or generate 107.75% 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. Emlak Konut Gayrimenkul
Performance |
| Timeline |
| Creditwest Faktoring |
| Emlak Konut Gayrimenkul |
Creditwest Faktoring and Emlak Konut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Emlak Konut
The main advantage of trading using opposite Creditwest Faktoring and Emlak Konut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Emlak Konut 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 Emlak Konut will offset losses from the drop in Emlak Konut's long position.| Creditwest Faktoring vs. Koza Anadolu Metal | Creditwest Faktoring vs. Politeknik Metal Sanayi | Creditwest Faktoring vs. ICBC Turkey Bank | Creditwest Faktoring vs. Cuhadaroglu Metal Sanayi |
| Emlak Konut vs. Yapi ve Kredi | Emlak Konut vs. Petkim Petrokimya Holding | Emlak Konut vs. Turkiye Is Bankasi | Emlak Konut vs. Kardemir Karabuk Demir |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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