Correlation Between Creditwest Faktoring and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Gentas Genel 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 Gentas Genel 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 Gentas Genel Metal, you can compare the effects of market volatilities on Creditwest Faktoring and Gentas Genel 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 Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Gentas Genel.
Diversification Opportunities for Creditwest Faktoring and Gentas Genel
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Creditwest and Gentas is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Gentas Genel Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentas Genel Metal 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 Gentas Genel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentas Genel Metal has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Gentas Genel go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Gentas Genel
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 0.95 times more return on investment than Gentas Genel. However, Creditwest Faktoring AS is 1.06 times less risky than Gentas Genel. It trades about 0.25 of its potential returns per unit of risk. Gentas Genel Metal is currently generating about -0.01 per unit of risk. If you would invest 613.00 in Creditwest Faktoring AS on November 3, 2024 and sell it today you would earn a total of 111.00 from holding Creditwest Faktoring AS or generate 18.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creditwest Faktoring AS vs. Gentas Genel Metal
Performance |
| Timeline |
| Creditwest Faktoring |
| Gentas Genel Metal |
Creditwest Faktoring and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Gentas Genel
The main advantage of trading using opposite Creditwest Faktoring and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Gentas Genel 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 Gentas Genel will offset losses from the drop in Gentas Genel's long position.| Creditwest Faktoring vs. MEGA METAL | Creditwest Faktoring vs. Silverline Endustri ve | Creditwest Faktoring vs. Politeknik Metal Sanayi | Creditwest Faktoring vs. Turkish Airlines |
| Gentas Genel vs. Sodas Sodyum Sanayi | Gentas Genel vs. Silverline Endustri ve | Gentas Genel vs. KOC METALURJI | Gentas Genel vs. Koza Anadolu 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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