Correlation Between Creditwest Faktoring and Zedur Enerji
Can any of the company-specific risk be diversified away by investing in both Creditwest Faktoring and Zedur Enerji 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 Zedur Enerji 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 Zedur Enerji Elektrik, you can compare the effects of market volatilities on Creditwest Faktoring and Zedur Enerji 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 Zedur Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creditwest Faktoring and Zedur Enerji.
Diversification Opportunities for Creditwest Faktoring and Zedur Enerji
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Creditwest and Zedur is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Zedur Enerji Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedur Enerji Elektrik 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 Zedur Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedur Enerji Elektrik has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Zedur Enerji go up and down completely randomly.
Pair Corralation between Creditwest Faktoring and Zedur Enerji
Assuming the 90 days trading horizon Creditwest Faktoring AS is expected to under-perform the Zedur Enerji. But the stock apears to be less risky and, when comparing its historical volatility, Creditwest Faktoring AS is 1.89 times less risky than Zedur Enerji. The stock trades about -0.23 of its potential returns per unit of risk. The Zedur Enerji Elektrik is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 857.00 in Zedur Enerji Elektrik on October 9, 2024 and sell it today you would earn a total of 35.00 from holding Zedur Enerji Elektrik or generate 4.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Creditwest Faktoring AS vs. Zedur Enerji Elektrik
Performance |
Timeline |
Creditwest Faktoring |
Zedur Enerji Elektrik |
Creditwest Faktoring and Zedur Enerji Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Creditwest Faktoring and Zedur Enerji
The main advantage of trading using opposite Creditwest Faktoring and Zedur Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creditwest Faktoring position performs unexpectedly, Zedur Enerji 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 Zedur Enerji will offset losses from the drop in Zedur Enerji's long position.Creditwest Faktoring vs. Cuhadaroglu Metal Sanayi | Creditwest Faktoring vs. Gentas Genel Metal | Creditwest Faktoring vs. Turkish Airlines | Creditwest Faktoring vs. Politeknik Metal Sanayi |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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