Correlation Between Creditwest Faktoring and Burcelik Bursa

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

Diversification Opportunities for Creditwest Faktoring and Burcelik Bursa

-0.56

Correlation Coefficient

Creditwest Faktoring  Burcelik Bursa

Excellent diversification

The 3 months correlation between Creditwest and Burcelik is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Burcelik Bursa Celik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burcelik Bursa Celik 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 Burcelik Bursa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burcelik Bursa Celik has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Burcelik Bursa go up and down completely randomly.

Pair Corralation between Creditwest Faktoring and Burcelik Bursa

Assuming the 90 days trading horizon Creditwest Faktoring is expected to generate 13.57 times less return on investment than Burcelik Bursa. But when comparing it to its historical volatility, Creditwest Faktoring AS is 8.83 times less risky than Burcelik Bursa. It trades about 0.03 of its potential returns per unit of risk. Burcelik Bursa Celik is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  508.00  in Burcelik Bursa Celik on September 19, 2024 and sell it today you would earn a total of  1,299  from holding Burcelik Bursa Celik or generate 255.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Creditwest Faktoring AS  vs.  Burcelik Bursa Celik

Creditwest Faktoring

Risk-Adjusted Performance

1 of 100

Weak

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

Burcelik Bursa Celik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Burcelik Bursa Celik has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Creditwest Faktoring and Burcelik Bursa

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

The idea behind Creditwest Faktoring AS and Burcelik Bursa Celik 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.