Correlation Between Creditwest Faktoring and Izmir Demir
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Izmir Demir 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 Izmir Demir 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 Izmir Demir Celik, you can compare the effects of market volatilities on Creditwest Faktoring and Izmir Demir 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 Izmir Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Izmir Demir.
Diversification Opportunities for Creditwest Faktoring and Izmir Demir
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Creditwest and Izmir is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Izmir Demir Celik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Izmir Demir Celik 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 Izmir Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Izmir Demir Celik has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Izmir Demir go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Izmir Demir
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 1.64 times more return on investment than Izmir Demir. However, Creditwest Faktoring is 1.64 times more volatile than Izmir Demir Celik. It trades about 0.09 of its potential returns per unit of risk. Izmir Demir Celik is currently generating about 0.1 per unit of risk. If you would invest 588.00 in Creditwest Faktoring AS on September 13, 2024 and sell it today you would earn a total of 42.00 from holding Creditwest Faktoring AS or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creditwest Faktoring AS vs. Izmir Demir Celik
Performance |
| Timeline |
| Creditwest Faktoring |
| Izmir Demir Celik |
Creditwest Faktoring and Izmir Demir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Izmir Demir
The main advantage of trading using opposite Creditwest Faktoring and Izmir Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Izmir Demir 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 Izmir Demir will offset losses from the drop in Izmir Demir's long position.| Creditwest Faktoring vs. Pamel Yenilenebilir Elektrik | Creditwest Faktoring vs. Bosch Fren Sistemleri | Creditwest Faktoring vs. Marka Yatirim Holding | Creditwest Faktoring vs. Dogus Gayrimenkul Yatirim |
| Izmir Demir vs. Turkiye Kalkinma Bankasi | Izmir Demir vs. Bms Birlesik Metal | Izmir Demir vs. Politeknik Metal Sanayi | Izmir Demir vs. Creditwest Faktoring AS |
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 Stocks Directory module to find actively traded stocks across global markets.
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