Correlation Between Creditwest Faktoring and Kristal Kola

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

Diversification Opportunities for Creditwest Faktoring and Kristal Kola

-0.02

Correlation Coefficient

Creditwest Faktoring  Kristal Kola

Good diversification

The 3 months correlation between Creditwest and Kristal is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Kristal Kola ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kristal Kola ve 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 Kristal Kola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kristal Kola ve has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Kristal Kola go up and down completely randomly.

Pair Corralation between Creditwest Faktoring and Kristal Kola

Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to generate 1.07 times more return on investment than Kristal Kola. However, Creditwest Faktoring is 1.07 times more volatile than Kristal Kola ve. It trades about 0.05 of its potential returns per unit of risk. Kristal Kola ve is currently generating about 0.02 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  44.00  from holding Creditwest Faktoring AS or generate 7.15% 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.  Kristal Kola ve

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 3 (%) 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.

Kristal Kola ve

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kristal Kola ve are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Kristal Kola is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Creditwest Faktoring and Kristal Kola

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

The idea behind Creditwest Faktoring AS and Kristal Kola ve 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.