Correlation Between Is Yatirim and Creditwest Faktoring

Can any of the company-specific risk be diversified away by investing in both Is Yatirim and Creditwest Faktoring 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 Is Yatirim and Creditwest Faktoring into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Is Yatirim Menkul and Creditwest Faktoring AS, you can compare the effects of market volatilities on Is Yatirim and Creditwest Faktoring 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 Is Yatirim with a short position of Creditwest Faktoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Yatirim and Creditwest Faktoring.

Diversification Opportunities for Is Yatirim and Creditwest Faktoring

0.62

Correlation Coefficient

Is Yatirim  Creditwest Faktoring

Poor diversification

The 3 months correlation between ISMEN and Creditwest is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Is Yatirim Menkul and Creditwest Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creditwest Faktoring and Is Yatirim 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 Is Yatirim Menkul are associated (or correlated) with Creditwest Faktoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creditwest Faktoring has no effect on the direction of Is Yatirim i.e., Is Yatirim and Creditwest Faktoring go up and down completely randomly.

Pair Corralation between Is Yatirim and Creditwest Faktoring

Assuming the 90 days trading horizon Is Yatirim Menkul is expected to generate 0.71 times more return on investment than Creditwest Faktoring. However, Is Yatirim Menkul is 1.41 times less risky than Creditwest Faktoring. It trades about 0.06 of its potential returns per unit of risk. Creditwest Faktoring AS is currently generating about 0.0 per unit of risk. If you would invest  3,129  in Is Yatirim Menkul on September 23, 2024 and sell it today you would earn a total of  1,255  from holding Is Yatirim Menkul or generate 40.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Is Yatirim Menkul  vs.  Creditwest Faktoring AS

Is Yatirim Menkul

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Is Yatirim Menkul are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Is Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Creditwest Faktoring

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Creditwest Faktoring AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Creditwest Faktoring is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Is Yatirim and Creditwest Faktoring

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

The idea behind Is Yatirim Menkul and Creditwest Faktoring AS 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.