Correlation Between Creditwest Faktoring and Prizma Pres
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Prizma Pres 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 Prizma Pres 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 Prizma Pres Matbaacilik, you can compare the effects of market volatilities on Creditwest Faktoring and Prizma Pres 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 Prizma Pres. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Prizma Pres.
Diversification Opportunities for Creditwest Faktoring and Prizma Pres
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Creditwest and Prizma is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Prizma Pres Matbaacilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prizma Pres Matbaacilik 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 Prizma Pres. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prizma Pres Matbaacilik has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Prizma Pres go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Prizma Pres
Assuming the 90 days trading horizon Creditwest Faktoring is expected to generate 2.17 times less return on investment than Prizma Pres. But when comparing it to its historical volatility, Creditwest Faktoring AS is 2.15 times less risky than Prizma Pres. It trades about 0.05 of its potential returns per unit of risk. Prizma Pres Matbaacilik is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 275.00 in Prizma Pres Matbaacilik on October 4, 2024 and sell it today you would earn a total of 437.00 from holding Prizma Pres Matbaacilik or generate 158.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Creditwest Faktoring AS vs. Prizma Pres Matbaacilik
Performance |
Timeline |
Creditwest Faktoring |
Prizma Pres Matbaacilik |
Creditwest Faktoring and Prizma Pres Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Creditwest Faktoring and Prizma Pres
The main advantage of trading using opposite Creditwest Faktoring and Prizma Pres positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Prizma Pres 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 Prizma Pres will offset losses from the drop in Prizma Pres' long position.Creditwest Faktoring vs. Turkiye Garanti Bankasi | Creditwest Faktoring vs. Akbank TAS | Creditwest Faktoring vs. Turkiye Vakiflar Bankasi | Creditwest Faktoring vs. Koc Holding AS |
Prizma Pres vs. Turkiye Petrol Rafinerileri | Prizma Pres vs. Koc Holding AS | Prizma Pres vs. Turkiye Sise ve | Prizma Pres vs. Eregli Demir ve |
Check out your portfolio center.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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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