Correlation Between Creditwest Faktoring and Galata Wind
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Galata Wind 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 Galata Wind 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 Galata Wind Enerji, you can compare the effects of market volatilities on Creditwest Faktoring and Galata Wind 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 Galata Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Galata Wind.
Diversification Opportunities for Creditwest Faktoring and Galata Wind
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Creditwest and Galata is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Galata Wind Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galata Wind Enerji 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 Galata Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galata Wind Enerji has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Galata Wind go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Galata Wind
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 2.3 times more return on investment than Galata Wind. However, Creditwest Faktoring is 2.3 times more volatile than Galata Wind Enerji. It trades about 0.2 of its potential returns per unit of risk. Galata Wind Enerji is currently generating about 0.02 per unit of risk. If you would invest 607.00 in Creditwest Faktoring AS on September 2, 2024 and sell it today you would earn a total of 109.00 from holding Creditwest Faktoring AS or generate 17.96% 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. Galata Wind Enerji
Performance |
| Timeline |
| Creditwest Faktoring |
| Galata Wind Enerji |
Creditwest Faktoring and Galata Wind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Galata Wind
The main advantage of trading using opposite Creditwest Faktoring and Galata Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Galata Wind 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 Galata Wind will offset losses from the drop in Galata Wind's long position.| Creditwest Faktoring vs. Cuhadaroglu Metal Sanayi | Creditwest Faktoring vs. MEGA METAL | Creditwest Faktoring vs. Akbank TAS | Creditwest Faktoring vs. Politeknik Metal Sanayi |
| Galata Wind vs. Creditwest Faktoring AS | Galata Wind vs. Bms Birlesik Metal | Galata Wind vs. Politeknik Metal Sanayi | Galata Wind vs. Galatasaray Sportif Sinai |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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