Correlation Between Yeni Gimat and Creditwest Faktoring
Can any of the company-specific risk be diversified away by investing in both Yeni Gimat 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 Yeni Gimat and Creditwest Faktoring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yeni Gimat Gayrimenkul and Creditwest Faktoring AS, you can compare the effects of market volatilities on Yeni Gimat 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 Yeni Gimat with a short position of Creditwest Faktoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yeni Gimat and Creditwest Faktoring.
Diversification Opportunities for Yeni Gimat and Creditwest Faktoring
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Yeni and Creditwest is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Yeni Gimat Gayrimenkul and Creditwest Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creditwest Faktoring and Yeni Gimat 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 Yeni Gimat Gayrimenkul 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 Yeni Gimat i.e., Yeni Gimat and Creditwest Faktoring go up and down completely randomly.
Pair Corralation between Yeni Gimat and Creditwest Faktoring
Assuming the 90 days trading horizon Yeni Gimat is expected to generate 1.48 times less return on investment than Creditwest Faktoring. But when comparing it to its historical volatility, Yeni Gimat Gayrimenkul is 1.93 times less risky than Creditwest Faktoring. It trades about 0.07 of its potential returns per unit of risk. Creditwest Faktoring AS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 402.00 in Creditwest Faktoring AS on August 27, 2024 and sell it today you would earn a total of 364.00 from holding Creditwest Faktoring AS or generate 90.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yeni Gimat Gayrimenkul vs. Creditwest Faktoring AS
Performance |
| Timeline |
| Yeni Gimat Gayrimenkul |
| Creditwest Faktoring |
Yeni Gimat and Creditwest Faktoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yeni Gimat and Creditwest Faktoring
The main advantage of trading using opposite Yeni Gimat and Creditwest Faktoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yeni Gimat 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.| Yeni Gimat vs. Creditwest Faktoring AS | Yeni Gimat vs. Akbank TAS | Yeni Gimat vs. Gentas Genel Metal | Yeni Gimat vs. Bms Birlesik Metal |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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