Correlation Between Lider Faktoring and Seker Finansal
Can any of the company-specific risk be diversified away by investing in both Lider Faktoring and Seker Finansal 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 Lider Faktoring and Seker Finansal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lider Faktoring AS and Seker Finansal Kiralama, you can compare the effects of market volatilities on Lider Faktoring and Seker Finansal 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 Lider Faktoring with a short position of Seker Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lider Faktoring and Seker Finansal.
Diversification Opportunities for Lider Faktoring and Seker Finansal
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lider and Seker is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lider Faktoring AS and Seker Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seker Finansal Kiralama and Lider 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 Lider Faktoring AS are associated (or correlated) with Seker Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seker Finansal Kiralama has no effect on the direction of Lider Faktoring i.e., Lider Faktoring and Seker Finansal go up and down completely randomly.
Pair Corralation between Lider Faktoring and Seker Finansal
Assuming the 90 days trading horizon Lider Faktoring AS is expected to under-perform the Seker Finansal. In addition to that, Lider Faktoring is 1.13 times more volatile than Seker Finansal Kiralama. It trades about -0.04 of its total potential returns per unit of risk. Seker Finansal Kiralama is currently generating about 0.03 per unit of volatility. If you would invest 755.00 in Seker Finansal Kiralama on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Seker Finansal Kiralama or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lider Faktoring AS vs. Seker Finansal Kiralama
Performance |
| Timeline |
| Lider Faktoring AS |
| Seker Finansal Kiralama |
Lider Faktoring and Seker Finansal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lider Faktoring and Seker Finansal
The main advantage of trading using opposite Lider Faktoring and Seker Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lider Faktoring position performs unexpectedly, Seker Finansal 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 Seker Finansal will offset losses from the drop in Seker Finansal's long position.| Lider Faktoring vs. Politeknik Metal Sanayi | Lider Faktoring vs. Gentas Genel Metal | Lider Faktoring vs. Galatasaray Sportif Sinai | Lider Faktoring vs. MEGA METAL |
| Seker Finansal vs. Cuhadaroglu Metal Sanayi | Seker Finansal vs. Akcansa Cimento Sanayi | Seker Finansal vs. Borlease Otomotiv AS | Seker Finansal vs. Qnb Finansbank AS |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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