Correlation Between Creditwest Faktoring and Yesil Yatirim

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

Diversification Opportunities for Creditwest Faktoring and Yesil Yatirim

0.0

Correlation Coefficient

Creditwest Faktoring  Yesil Yatirim

Pay attention - limited upside

The 3 months correlation between Creditwest and Yesil is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Yesil Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yatirim Holding 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 Yesil Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yatirim Holding has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Yesil Yatirim go up and down completely randomly.

Pair Corralation between Creditwest Faktoring and Yesil Yatirim

If you would invest  536.00  in Creditwest Faktoring AS on October 4, 2024 and sell it today you would earn a total of  77.00  from holding Creditwest Faktoring AS or generate 14.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Creditwest Faktoring AS  vs.  Yesil Yatirim Holding

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 weak forward indicators, Creditwest Faktoring demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Yesil Yatirim Holding

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yesil Yatirim Holding are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Yesil Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Creditwest Faktoring and Yesil Yatirim

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

The idea behind Creditwest Faktoring AS and Yesil Yatirim Holding 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.