Correlation Between Creditwest Faktoring and E Data

Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and E Data 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 Creditwest Faktoring and E Data into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Creditwest Faktoring AS and E Data Teknoloji Pazarlama, you can compare the effects of market volatilities on Creditwest Faktoring and E Data 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 Creditwest Faktoring with a short position of E Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and E Data.

Diversification Opportunities for Creditwest Faktoring and E Data

-0.08

Correlation Coefficient

Creditwest Faktoring  E Data

Good diversification

The 3 months correlation between Creditwest and EDATA is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and E Data Teknoloji Pazarlama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Data Teknoloji and Creditwest 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 Creditwest Faktoring AS are associated (or correlated) with E Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Data Teknoloji has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and E Data go up and down completely randomly.

Pair Corralation between Creditwest Faktoring and E Data

Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 1.67 times more return on investment than E Data. However, Creditwest Faktoring is 1.67 times more volatile than E Data Teknoloji Pazarlama. It trades about 0.05 of its potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about -0.09 per unit of risk. If you would invest  595.00  in Creditwest Faktoring AS on September 14, 2024 and sell it today you would earn a total of  50.00  from holding Creditwest Faktoring AS or generate 8.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Creditwest Faktoring AS  vs.  E Data Teknoloji Pazarlama

Creditwest Faktoring

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Creditwest Faktoring AS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Creditwest Faktoring may actually be approaching a critical reversion point that can send shares even higher in January 2025.

E Data Teknoloji

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days E Data Teknoloji Pazarlama has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Creditwest Faktoring and E Data

The main advantage of trading using opposite Creditwest Faktoring and E Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, E Data 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 E Data will offset losses from the drop in E Data's long position.

The idea behind Creditwest Faktoring AS and E Data Teknoloji Pazarlama pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.