Correlation Between Creditwest Faktoring and Hedef Girisim

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

Diversification Opportunities for Creditwest Faktoring and Hedef Girisim

0.46

Correlation Coefficient

Creditwest Faktoring  Hedef Girisim

Very weak diversification

The 3 months correlation between Creditwest and Hedef is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Hedef Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedef Girisim Sermayesi 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 Hedef Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedef Girisim Sermayesi has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Hedef Girisim go up and down completely randomly.

Pair Corralation between Creditwest Faktoring and Hedef Girisim

Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 1.65 times more return on investment than Hedef Girisim. However, Creditwest Faktoring is 1.65 times more volatile than Hedef Girisim Sermayesi. It trades about 0.08 of its potential returns per unit of risk. Hedef Girisim Sermayesi is currently generating about 0.11 per unit of risk. If you would invest  537.00  in Creditwest Faktoring AS on October 6, 2024 and sell it today you would earn a total of  71.00  from holding Creditwest Faktoring AS or generate 13.22% return on investment over 90 days.

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

Creditwest Faktoring AS  vs.  Hedef Girisim Sermayesi

Creditwest Faktoring

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Creditwest Faktoring AS are ranked lower than 5 (%) 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.

Hedef Girisim Sermayesi

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hedef Girisim Sermayesi are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Hedef Girisim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Creditwest Faktoring and Hedef Girisim

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

The idea behind Creditwest Faktoring AS and Hedef Girisim Sermayesi 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.