Correlation Between Halk Gayrimenkul and Creditwest Faktoring
Can any of the company-specific risk be diversified away by investing in both Halk Gayrimenkul 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 Halk Gayrimenkul and Creditwest Faktoring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Halk Gayrimenkul Yatirim and Creditwest Faktoring AS, you can compare the effects of market volatilities on Halk Gayrimenkul 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 Halk Gayrimenkul with a short position of Creditwest Faktoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halk Gayrimenkul and Creditwest Faktoring.
Diversification Opportunities for Halk Gayrimenkul and Creditwest Faktoring
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Halk and Creditwest is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Halk Gayrimenkul Yatirim and Creditwest Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creditwest Faktoring and Halk Gayrimenkul 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 Halk Gayrimenkul Yatirim 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 Halk Gayrimenkul i.e., Halk Gayrimenkul and Creditwest Faktoring go up and down completely randomly.
Pair Corralation between Halk Gayrimenkul and Creditwest Faktoring
Assuming the 90 days trading horizon Halk Gayrimenkul Yatirim is expected to generate 0.55 times more return on investment than Creditwest Faktoring. However, Halk Gayrimenkul Yatirim is 1.81 times less risky than Creditwest Faktoring. It trades about 0.43 of its potential returns per unit of risk. Creditwest Faktoring AS is currently generating about 0.15 per unit of risk. If you would invest 221.00 in Halk Gayrimenkul Yatirim on September 4, 2024 and sell it today you would earn a total of 56.00 from holding Halk Gayrimenkul Yatirim or generate 25.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halk Gayrimenkul Yatirim vs. Creditwest Faktoring AS
Performance |
| Timeline |
| Halk Gayrimenkul Yatirim |
| Creditwest Faktoring |
Halk Gayrimenkul and Creditwest Faktoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halk Gayrimenkul and Creditwest Faktoring
The main advantage of trading using opposite Halk Gayrimenkul and Creditwest Faktoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halk Gayrimenkul 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.| Halk Gayrimenkul vs. Creditwest Faktoring AS | Halk Gayrimenkul vs. Brisa Bridgestone Sabanci | Halk Gayrimenkul vs. Pinar Entegre Et | Halk Gayrimenkul vs. Turk Telekomunikasyon AS |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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