Correlation Between Garanti Faktoring and Creditwest Faktoring
Can any of the company-specific risk be diversified away by investing in both Garanti Faktoring and Creditwest Faktoring 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 Garanti Faktoring and Creditwest Faktoring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garanti Faktoring AS and Creditwest Faktoring AS, you can compare the effects of market volatilities on Garanti Faktoring and Creditwest Faktoring 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 Garanti Faktoring with a short position of Creditwest Faktoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garanti Faktoring and Creditwest Faktoring.
Diversification Opportunities for Garanti Faktoring and Creditwest Faktoring
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Garanti and Creditwest is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Garanti Faktoring AS and Creditwest Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creditwest Faktoring and Garanti 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 Garanti Faktoring AS are associated (or correlated) with Creditwest Faktoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creditwest Faktoring has no effect on the direction of Garanti Faktoring i.e., Garanti Faktoring and Creditwest Faktoring go up and down completely randomly.
Pair Corralation between Garanti Faktoring and Creditwest Faktoring
Assuming the 90 days trading horizon Garanti Faktoring is expected to generate 8.32 times less return on investment than Creditwest Faktoring. But when comparing it to its historical volatility, Garanti Faktoring AS is 2.7 times less risky than Creditwest Faktoring. It trades about 0.06 of its potential returns per unit of risk. Creditwest Faktoring AS is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 621.00 in Creditwest Faktoring AS on September 1, 2024 and sell it today you would earn a total of 95.00 from holding Creditwest Faktoring AS or generate 15.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garanti Faktoring AS vs. Creditwest Faktoring AS
Performance |
| Timeline |
| Garanti Faktoring |
| Creditwest Faktoring |
Garanti Faktoring and Creditwest Faktoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garanti Faktoring and Creditwest Faktoring
The main advantage of trading using opposite Garanti Faktoring and Creditwest Faktoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garanti Faktoring position performs unexpectedly, Creditwest Faktoring 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 Creditwest Faktoring will offset losses from the drop in Creditwest Faktoring's long position.| Garanti Faktoring vs. Silverline Endustri ve | Garanti Faktoring vs. Trabzonspor Sportif Yatirim | Garanti Faktoring vs. Akcansa Cimento Sanayi | Garanti Faktoring vs. Sodas Sodyum Sanayi |
| Creditwest Faktoring vs. Silverline Endustri ve | Creditwest Faktoring vs. Cuhadaroglu Metal Sanayi | Creditwest Faktoring vs. Qnb Finansbank AS | Creditwest Faktoring vs. E Data Teknoloji Pazarlama |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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