Correlation Between Creditwest Faktoring and Smart Gunes
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Smart Gunes 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 Smart Gunes 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 Smart Gunes Enerjisi, you can compare the effects of market volatilities on Creditwest Faktoring and Smart Gunes 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 Smart Gunes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Smart Gunes.
Diversification Opportunities for Creditwest Faktoring and Smart Gunes
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Creditwest and Smart is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Smart Gunes Enerjisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Gunes Enerjisi 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 Smart Gunes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Gunes Enerjisi has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Smart Gunes go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Smart Gunes
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 1.33 times more return on investment than Smart Gunes. However, Creditwest Faktoring is 1.33 times more volatile than Smart Gunes Enerjisi. It trades about 0.57 of its potential returns per unit of risk. Smart Gunes Enerjisi is currently generating about 0.04 per unit of risk. If you would invest 574.00 in Creditwest Faktoring AS on August 30, 2024 and sell it today you would earn a total of 279.00 from holding Creditwest Faktoring AS or generate 48.61% 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. Smart Gunes Enerjisi
Performance |
| Timeline |
| Creditwest Faktoring |
| Smart Gunes Enerjisi |
Creditwest Faktoring and Smart Gunes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Smart Gunes
The main advantage of trading using opposite Creditwest Faktoring and Smart Gunes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Smart Gunes 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 Smart Gunes will offset losses from the drop in Smart Gunes' long position.| Creditwest Faktoring vs. MEGA METAL | Creditwest Faktoring vs. Cuhadaroglu Metal Sanayi | Creditwest Faktoring vs. Akbank TAS | Creditwest Faktoring vs. Gentas Genel Metal |
| Smart Gunes vs. Creditwest Faktoring AS | Smart Gunes vs. MEGA METAL | Smart Gunes vs. Trabzonspor Sportif Yatirim | Smart Gunes vs. Sodas Sodyum Sanayi |
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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