Correlation Between Lider Faktoring and Silverline Endustri
Can any of the company-specific risk be diversified away by investing in both Lider Faktoring and Silverline Endustri 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 Silverline Endustri 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 Silverline Endustri ve, you can compare the effects of market volatilities on Lider Faktoring and Silverline Endustri 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 Silverline Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lider Faktoring and Silverline Endustri.
Diversification Opportunities for Lider Faktoring and Silverline Endustri
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lider and Silverline is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lider Faktoring AS and Silverline Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silverline Endustri 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 Silverline Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silverline Endustri has no effect on the direction of Lider Faktoring i.e., Lider Faktoring and Silverline Endustri go up and down completely randomly.
Pair Corralation between Lider Faktoring and Silverline Endustri
Assuming the 90 days trading horizon Lider Faktoring AS is expected to under-perform the Silverline Endustri. But the stock apears to be less risky and, when comparing its historical volatility, Lider Faktoring AS is 1.34 times less risky than Silverline Endustri. The stock trades about -0.08 of its potential returns per unit of risk. The Silverline Endustri ve is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,126 in Silverline Endustri ve on August 29, 2024 and sell it today you would lose (68.00) from holding Silverline Endustri ve or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lider Faktoring AS vs. Silverline Endustri ve
Performance |
| Timeline |
| Lider Faktoring AS |
| Silverline Endustri |
Lider Faktoring and Silverline Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lider Faktoring and Silverline Endustri
The main advantage of trading using opposite Lider Faktoring and Silverline Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lider Faktoring position performs unexpectedly, Silverline Endustri 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 Silverline Endustri will offset losses from the drop in Silverline Endustri's long position.| Lider Faktoring vs. Silverline Endustri ve | Lider Faktoring vs. Gentas Genel Metal | Lider Faktoring vs. Koza Anadolu Metal | Lider Faktoring vs. MEGA METAL |
| Silverline Endustri vs. MEGA METAL | Silverline Endustri vs. Sekerbank TAS | Silverline Endustri vs. Akbank TAS | Silverline Endustri vs. ICBC Turkey Bank |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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