Correlation Between Creditwest Faktoring and Sekerbank TAS
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Sekerbank TAS 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 Sekerbank TAS 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 Sekerbank TAS, you can compare the effects of market volatilities on Creditwest Faktoring and Sekerbank TAS 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 Sekerbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Sekerbank TAS.
Diversification Opportunities for Creditwest Faktoring and Sekerbank TAS
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Creditwest and Sekerbank is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Sekerbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekerbank TAS 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 Sekerbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekerbank TAS has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Sekerbank TAS go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Sekerbank TAS
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 1.75 times more return on investment than Sekerbank TAS. However, Creditwest Faktoring is 1.75 times more volatile than Sekerbank TAS. It trades about 0.15 of its potential returns per unit of risk. Sekerbank TAS is currently generating about 0.26 per unit of risk. If you would invest 596.00 in Creditwest Faktoring AS on September 4, 2024 and sell it today you would earn a total of 80.00 from holding Creditwest Faktoring AS or generate 13.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creditwest Faktoring AS vs. Sekerbank TAS
Performance |
| Timeline |
| Creditwest Faktoring |
| Sekerbank TAS |
Creditwest Faktoring and Sekerbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Sekerbank TAS
The main advantage of trading using opposite Creditwest Faktoring and Sekerbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Sekerbank TAS 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 Sekerbank TAS will offset losses from the drop in Sekerbank TAS's long position.| Creditwest Faktoring vs. Galatasaray Sportif Sinai | Creditwest Faktoring vs. Koza Anadolu Metal | Creditwest Faktoring vs. Cuhadaroglu Metal Sanayi | Creditwest Faktoring vs. Trabzonspor Sportif Yatirim |
| Sekerbank TAS vs. Desa Deri Sanayi | Sekerbank TAS vs. Tumosan Motor ve | Sekerbank TAS vs. Ihlas Gazetecilik AS | Sekerbank TAS vs. Kuyas Yatirim 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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