Correlation Between Creditwest Faktoring and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Galatasaray Sportif 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 Galatasaray Sportif 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 Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Creditwest Faktoring and Galatasaray Sportif 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 Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Galatasaray Sportif.
Diversification Opportunities for Creditwest Faktoring and Galatasaray Sportif
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Creditwest and Galatasaray is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Galatasaray Sportif Sinai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galatasaray Sportif Sinai 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 Galatasaray Sportif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galatasaray Sportif Sinai has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Galatasaray Sportif
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 1.74 times more return on investment than Galatasaray Sportif. However, Creditwest Faktoring is 1.74 times more volatile than Galatasaray Sportif Sinai. It trades about 0.28 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about 0.01 per unit of risk. If you would invest 580.00 in Creditwest Faktoring AS on August 30, 2024 and sell it today you would earn a total of 273.00 from holding Creditwest Faktoring AS or generate 47.07% 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. Galatasaray Sportif Sinai
Performance |
| Timeline |
| Creditwest Faktoring |
| Galatasaray Sportif Sinai |
Creditwest Faktoring and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Galatasaray Sportif
The main advantage of trading using opposite Creditwest Faktoring and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Galatasaray Sportif 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 Galatasaray Sportif will offset losses from the drop in Galatasaray Sportif's long position.| Creditwest Faktoring vs. Galatasaray Sportif Sinai | Creditwest Faktoring vs. Bms Birlesik Metal | Creditwest Faktoring vs. Koza Anadolu Metal | Creditwest Faktoring vs. Turkish Airlines |
| Galatasaray Sportif vs. Akbank TAS | Galatasaray Sportif vs. Borlease Otomotiv AS | Galatasaray Sportif vs. Creditwest Faktoring AS | Galatasaray Sportif vs. Bms Birlesik 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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