Correlation Between Sekerbank TAS and Lider Faktoring
Can any of the company-specific risk be diversified away by investing in both Sekerbank TAS and Lider 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 Sekerbank TAS and Lider Faktoring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sekerbank TAS and Lider Faktoring AS, you can compare the effects of market volatilities on Sekerbank TAS and Lider 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 Sekerbank TAS with a short position of Lider Faktoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekerbank TAS and Lider Faktoring.
Diversification Opportunities for Sekerbank TAS and Lider Faktoring
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sekerbank and Lider is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS and Lider Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lider Faktoring AS and Sekerbank TAS 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 Sekerbank TAS are associated (or correlated) with Lider Faktoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lider Faktoring AS has no effect on the direction of Sekerbank TAS i.e., Sekerbank TAS and Lider Faktoring go up and down completely randomly.
Pair Corralation between Sekerbank TAS and Lider Faktoring
Assuming the 90 days trading horizon Sekerbank TAS is expected to generate 1.09 times more return on investment than Lider Faktoring. However, Sekerbank TAS is 1.09 times more volatile than Lider Faktoring AS. It trades about 0.07 of its potential returns per unit of risk. Lider Faktoring AS is currently generating about -0.07 per unit of risk. If you would invest 391.00 in Sekerbank TAS on September 3, 2024 and sell it today you would earn a total of 74.00 from holding Sekerbank TAS or generate 18.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sekerbank TAS vs. Lider Faktoring AS
Performance |
| Timeline |
| Sekerbank TAS |
| Lider Faktoring AS |
Sekerbank TAS and Lider Faktoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sekerbank TAS and Lider Faktoring
The main advantage of trading using opposite Sekerbank TAS and Lider Faktoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekerbank TAS position performs unexpectedly, Lider 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 Lider Faktoring will offset losses from the drop in Lider Faktoring's long position.| Sekerbank TAS vs. Desa Deri Sanayi | Sekerbank TAS vs. Tumosan Motor ve | Sekerbank TAS vs. Ihlas Gazetecilik AS | Sekerbank TAS vs. Kuyas Yatirim AS |
| Lider Faktoring vs. Koza Anadolu Metal | Lider Faktoring vs. Sekerbank TAS | Lider Faktoring vs. Akbank TAS | Lider Faktoring vs. Gentas Genel Metal |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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