Correlation Between Creditwest Faktoring and Is Yatirim

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

Diversification Opportunities for Creditwest Faktoring and Is Yatirim

-0.52

Correlation Coefficient

Creditwest Faktoring  Is Yatirim

Excellent diversification

The 3 months correlation between Creditwest and ISYAT is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Is Yatirim Ortakligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Yatirim Ortakligi 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 Is Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Yatirim Ortakligi has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Is Yatirim go up and down completely randomly.

Pair Corralation between Creditwest Faktoring and Is Yatirim

Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 1.63 times more return on investment than Is Yatirim. However, Creditwest Faktoring is 1.63 times more volatile than Is Yatirim Ortakligi. It trades about 0.06 of its potential returns per unit of risk. Is Yatirim Ortakligi is currently generating about -0.1 per unit of risk. If you would invest  615.00  in Creditwest Faktoring AS on December 25, 2024 and sell it today you would earn a total of  56.00  from holding Creditwest Faktoring AS or generate 9.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Creditwest Faktoring AS  vs.  Is Yatirim Ortakligi

Creditwest Faktoring

Risk-Adjusted Performance

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 April 2025.

Is Yatirim Ortakligi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Is Yatirim Ortakligi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Creditwest Faktoring and Is Yatirim

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

The idea behind Creditwest Faktoring AS and Is Yatirim Ortakligi 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.