Correlation Between Creditwest Faktoring and Temapol Polimer
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Temapol Polimer 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 Temapol Polimer 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 Temapol Polimer Plastik, you can compare the effects of market volatilities on Creditwest Faktoring and Temapol Polimer 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 Temapol Polimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Temapol Polimer.
Diversification Opportunities for Creditwest Faktoring and Temapol Polimer
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Creditwest and Temapol is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Temapol Polimer Plastik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Temapol Polimer Plastik 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 Temapol Polimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Temapol Polimer Plastik has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Temapol Polimer go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Temapol Polimer
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 1.11 times more return on investment than Temapol Polimer. However, Creditwest Faktoring is 1.11 times more volatile than Temapol Polimer Plastik. It trades about 0.03 of its potential returns per unit of risk. Temapol Polimer Plastik is currently generating about -0.02 per unit of risk. If you would invest 593.00 in Creditwest Faktoring AS on September 12, 2024 and sell it today you would earn a total of 37.00 from holding Creditwest Faktoring AS or generate 6.24% 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. Temapol Polimer Plastik
Performance |
| Timeline |
| Creditwest Faktoring |
| Temapol Polimer Plastik |
Creditwest Faktoring and Temapol Polimer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creditwest Faktoring and Temapol Polimer
The main advantage of trading using opposite Creditwest Faktoring and Temapol Polimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Temapol Polimer 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 Temapol Polimer will offset losses from the drop in Temapol Polimer's long position.| Creditwest Faktoring vs. Bms Birlesik Metal | Creditwest Faktoring vs. Silverline Endustri ve | Creditwest Faktoring vs. Sodas Sodyum Sanayi | Creditwest Faktoring vs. Turkiye Kalkinma Bankasi |
| Temapol Polimer vs. ICBC Turkey Bank | Temapol Polimer vs. Creditwest Faktoring AS | Temapol Polimer vs. Bms Birlesik Metal | Temapol Polimer vs. Koza Anadolu 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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