Correlation Between Creditwest Faktoring and Nurol Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Nurol Gayrimenkul 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 Nurol Gayrimenkul 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 Nurol Gayrimenkul Yatirim, you can compare the effects of market volatilities on Creditwest Faktoring and Nurol Gayrimenkul 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 Nurol Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Nurol Gayrimenkul.
Diversification Opportunities for Creditwest Faktoring and Nurol Gayrimenkul
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Creditwest and Nurol is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Nurol Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nurol Gayrimenkul Yatirim 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 Nurol Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nurol Gayrimenkul Yatirim has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Nurol Gayrimenkul go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Nurol Gayrimenkul
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to under-perform the Nurol Gayrimenkul. In addition to that, Creditwest Faktoring is 1.14 times more volatile than Nurol Gayrimenkul Yatirim. It trades about -0.11 of its total potential returns per unit of risk. Nurol Gayrimenkul Yatirim is currently generating about -0.03 per unit of volatility. If you would invest 774.00 in Nurol Gayrimenkul Yatirim on October 12, 2024 and sell it today you would lose (9.00) from holding Nurol Gayrimenkul Yatirim or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creditwest Faktoring AS vs. Nurol Gayrimenkul Yatirim
Performance |
| Timeline |
| Creditwest Faktoring |
| Nurol Gayrimenkul Yatirim |
Creditwest Faktoring and Nurol Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Nurol Gayrimenkul
The main advantage of trading using opposite Creditwest Faktoring and Nurol Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Nurol Gayrimenkul 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 Nurol Gayrimenkul will offset losses from the drop in Nurol Gayrimenkul's long position.| Creditwest Faktoring vs. Cuhadaroglu Metal Sanayi | Creditwest Faktoring vs. Bms Birlesik Metal | Creditwest Faktoring vs. Gentas Genel Metal | Creditwest Faktoring vs. MEGA METAL |
| Nurol Gayrimenkul vs. Cuhadaroglu Metal Sanayi | Nurol Gayrimenkul vs. Koza Anadolu Metal | Nurol Gayrimenkul vs. Creditwest Faktoring AS | Nurol Gayrimenkul 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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