Correlation Between Creditwest Faktoring and Margun Enerji
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Margun Enerji 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 Margun Enerji 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 Margun Enerji Uretim, you can compare the effects of market volatilities on Creditwest Faktoring and Margun Enerji 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 Margun Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Margun Enerji.
Diversification Opportunities for Creditwest Faktoring and Margun Enerji
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Creditwest and Margun is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Margun Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Margun Enerji Uretim 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 Margun Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Margun Enerji Uretim has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Margun Enerji go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Margun Enerji
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 2.15 times more return on investment than Margun Enerji. However, Creditwest Faktoring is 2.15 times more volatile than Margun Enerji Uretim. It trades about 0.48 of its potential returns per unit of risk. Margun Enerji Uretim is currently generating about -0.13 per unit of risk. If you would invest 580.00 in Creditwest Faktoring AS on August 27, 2024 and sell it today you would earn a total of 224.00 from holding Creditwest Faktoring AS or generate 38.62% 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. Margun Enerji Uretim
Performance |
| Timeline |
| Creditwest Faktoring |
| Margun Enerji Uretim |
Creditwest Faktoring and Margun Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Margun Enerji
The main advantage of trading using opposite Creditwest Faktoring and Margun Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Margun Enerji 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 Margun Enerji will offset losses from the drop in Margun Enerji's long position.| Creditwest Faktoring vs. Koza Anadolu Metal | Creditwest Faktoring vs. Politeknik Metal Sanayi | Creditwest Faktoring vs. ICBC Turkey Bank | Creditwest Faktoring vs. Cuhadaroglu Metal Sanayi |
| Margun Enerji vs. Sodas Sodyum Sanayi | Margun Enerji vs. Bms Birlesik Metal | Margun Enerji vs. Turkiye Kalkinma Bankasi | Margun Enerji 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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