Correlation Between Turkiye Is and Creditwest Faktoring
Can any of the company-specific risk be diversified away by investing in both Turkiye Is 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 Turkiye Is and Creditwest Faktoring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Is Bankasi and Creditwest Faktoring AS, you can compare the effects of market volatilities on Turkiye Is 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 Turkiye Is with a short position of Creditwest Faktoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and Creditwest Faktoring.
Diversification Opportunities for Turkiye Is and Creditwest Faktoring
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turkiye and Creditwest is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Creditwest Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creditwest Faktoring and Turkiye Is 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 Turkiye Is Bankasi 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 Turkiye Is i.e., Turkiye Is and Creditwest Faktoring go up and down completely randomly.
Pair Corralation between Turkiye Is and Creditwest Faktoring
Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to under-perform the Creditwest Faktoring. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Is Bankasi is 1.09 times less risky than Creditwest Faktoring. The stock trades about -0.04 of its potential returns per unit of risk. The Creditwest Faktoring AS is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 637.00 in Creditwest Faktoring AS on August 25, 2024 and sell it today you would earn a total of 129.00 from holding Creditwest Faktoring AS or generate 20.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Is Bankasi vs. Creditwest Faktoring AS
Performance |
| Timeline |
| Turkiye Is Bankasi |
| Creditwest Faktoring |
Turkiye Is and Creditwest Faktoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Is and Creditwest Faktoring
The main advantage of trading using opposite Turkiye Is and Creditwest Faktoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Is 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.| Turkiye Is vs. Qnb Finansbank AS | Turkiye Is vs. Turkiye Is Bankasi | Turkiye Is vs. Haci Omer Sabanci | Turkiye Is vs. Turkiye Vakiflar Bankasi |
| Creditwest Faktoring vs. Turkiye Is Bankasi | Creditwest Faktoring vs. Turkiye Is Bankasi | Creditwest Faktoring vs. Haci Omer Sabanci | Creditwest Faktoring vs. Turkiye Garanti Bankasi |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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