Correlation Between Creditwest Faktoring and Ekiz Kimya
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Ekiz Kimya 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 Ekiz Kimya 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 Ekiz Kimya Sanayi, you can compare the effects of market volatilities on Creditwest Faktoring and Ekiz Kimya 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 Ekiz Kimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Ekiz Kimya.
Diversification Opportunities for Creditwest Faktoring and Ekiz Kimya
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Creditwest and Ekiz is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Ekiz Kimya Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekiz Kimya 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 Ekiz Kimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekiz Kimya Sanayi has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Ekiz Kimya go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Ekiz Kimya
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 1.76 times more return on investment than Ekiz Kimya. However, Creditwest Faktoring is 1.76 times more volatile than Ekiz Kimya Sanayi. It trades about 0.16 of its potential returns per unit of risk. Ekiz Kimya Sanayi is currently generating about -0.05 per unit of risk. If you would invest 596.00 in Creditwest Faktoring AS on September 5, 2024 and sell it today you would earn a total of 89.00 from holding Creditwest Faktoring AS or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creditwest Faktoring AS vs. Ekiz Kimya Sanayi
Performance |
| Timeline |
| Creditwest Faktoring |
| Ekiz Kimya Sanayi |
Creditwest Faktoring and Ekiz Kimya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Ekiz Kimya
The main advantage of trading using opposite Creditwest Faktoring and Ekiz Kimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Ekiz Kimya 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 Ekiz Kimya will offset losses from the drop in Ekiz Kimya's long position.| Creditwest Faktoring vs. Desa Deri Sanayi | Creditwest Faktoring vs. Tumosan Motor ve | Creditwest Faktoring vs. Ihlas Gazetecilik AS | Creditwest Faktoring vs. Kuyas Yatirim AS |
| Ekiz Kimya vs. Politeknik Metal Sanayi | Ekiz Kimya vs. Creditwest Faktoring AS | Ekiz Kimya vs. Turkiye Kalkinma Bankasi | Ekiz Kimya vs. MEGA 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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