Correlation Between Creditwest Faktoring and Kent Gida

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

Diversification Opportunities for Creditwest Faktoring and Kent Gida

0.23

Correlation Coefficient

Creditwest Faktoring  Kent Gida

Modest diversification

The 3 months correlation between Creditwest and Kent is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Creditwest Faktoring AS and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri 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 Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of Creditwest Faktoring i.e., Creditwest Faktoring and Kent Gida go up and down completely randomly.

Pair Corralation between Creditwest Faktoring and Kent Gida

Assuming the 90 days trading horizon Creditwest Faktoring is expected to generate 2.77 times less return on investment than Kent Gida. In addition to that, Creditwest Faktoring is 1.09 times more volatile than Kent Gida Maddeleri. It trades about 0.13 of its total potential returns per unit of risk. Kent Gida Maddeleri is currently generating about 0.4 per unit of volatility. If you would invest  73,800  in Kent Gida Maddeleri on September 14, 2024 and sell it today you would earn a total of  30,700  from holding Kent Gida Maddeleri or generate 41.6% 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.  Kent Gida Maddeleri

Creditwest Faktoring

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Creditwest Faktoring AS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Creditwest Faktoring demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Kent Gida Maddeleri

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kent Gida Maddeleri are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Kent Gida may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Creditwest Faktoring and Kent Gida

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

The idea behind Creditwest Faktoring AS and Kent Gida Maddeleri 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.