Correlation Between Creditwest Faktoring and Girisim Elektrik

Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Girisim Elektrik 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 Girisim Elektrik 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 Girisim Elektrik Taahhut, you can compare the effects of market volatilities on Creditwest Faktoring and Girisim Elektrik 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 Girisim Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Girisim Elektrik.

Diversification Opportunities for Creditwest Faktoring and Girisim Elektrik

0.56

Correlation Coefficient

Creditwest Faktoring  Girisim Elektrik

Very weak diversification

The 3 months correlation between Creditwest and Girisim is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Girisim Elektrik Taahhut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Girisim Elektrik Taahhut 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 Girisim Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Girisim Elektrik Taahhut has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Girisim Elektrik go up and down completely randomly.

Pair Corralation between Creditwest Faktoring and Girisim Elektrik

Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 1.13 times more return on investment than Girisim Elektrik. However, Creditwest Faktoring is 1.13 times more volatile than Girisim Elektrik Taahhut. It trades about 0.08 of its potential returns per unit of risk. Girisim Elektrik Taahhut is currently generating about 0.07 per unit of risk. If you would invest  531.00  in Creditwest Faktoring AS on October 23, 2024 and sell it today you would earn a total of  68.00  from holding Creditwest Faktoring AS or generate 12.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Creditwest Faktoring AS  vs.  Girisim Elektrik Taahhut

Creditwest Faktoring

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Creditwest Faktoring AS are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Creditwest Faktoring demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Girisim Elektrik Taahhut

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Girisim Elektrik Taahhut are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Girisim Elektrik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Creditwest Faktoring and Girisim Elektrik

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

The idea behind Creditwest Faktoring AS and Girisim Elektrik Taahhut 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.